Sale-Leaseback Transactions

Sale-leaseback arrangements can be advantageous to buyers and owners of businesses who need to achieve substantial infusions of capital without incurring the indebtedness that would be incurred, or who simply wish to monetize a greater portion of the appreciated value of their real estate than would be possible in a traditional financing. Sidley’s Real Estate practice team is a leader in these transactions, that frequently include a large number of locations in multiple jurisdictions. We have represented both the purchaser-landlord (the party providing the capital infusion to the business) and the seller-tenant (the party receiving the financing) in these complex transactions. We work closely with lawyers in our Tax practice and clients’ tax and accounting advisors to structure these transactions to comport with the complex tax and accounting rules that govern them.