Dubai Investments this week led a consortium to fully acquire Kent College Dubai via its subsidiary Al Mal Capital in a sale and leaseback
transaction, highlighting the growing investor appeal of the Gulf's education sector.
M2 EQUITYBITES-July 20, 2017-PPHE Hotel Group Closes Sale, Leaseback
Deal for Park Plaza London Waterloo
UK-based hotel, coffee shop and restaurant company Whitbread plc (LSE: WTB) has inked the sale and leaseback
of its 389 room Hub by Premier Inn hotel in Kings Cross, London, the company said.
, short for sale-and-leaseback
, is a fiscal transaction, where one sells an asset and leases it back for the long-term; hence, one pursues to be capable to utilize the asset but no longer claims it.
While sale leasebacks
have been around since the 1940s, the shortage of all types of real estate investments has brought renewed attention to viable sale leaseback
Over the past five years, it has generated more than [pounds sterling] 5bn from the sale and leaseback
of property assets - delivering profits of [pounds sterling] 1-3hn.
France, popular back in the 1960s at the dawn of the second home era, in particular is receiving renewed investor interest with the leaseback
system cited as a key factor in the decision making process.
The hot market for property has seen businesses rushing to cash in the value of their buildings in sale and leaseback
According to generally accepted accounting principles (GAAP), because of the simultaneous 15-year leaseback
, the entire pre-tax gain of $5 million would be recognizable over the life of the lease, rather than in the year of the sale.
As long as (1) the property is originally placed in service after May 5, 2003 and (2) the leaseback
occurs within three months of when the seller originally placed it in service, the property is treated as placed in service by the taxpayer on the date of the leaseback
FROZEN foods chain Iceland is understood to be considering a sale and leaseback
deal on its store portfolio in a move to reduce its spiralling debt.
One strategy that could provide tax and financial advantages to both a corporation and its controlling shareholder is a sale and leaseback
of real property in which the corporation sells real estate with a building on it to the shareholder, who, in turn, leases both back to the company.