Sale-and-leaseback is a transaction in which a company that owns its warehouse or industrial property sells the asset to an investor, such as a regulated real estate company (RREC), and simultaneously signs a long-term lease to keep operating from the same site. The seller converts a fixed asset into liquid capital while retaining full operational use of the building.

In short: sale-and-leaseback turns real estate you already own into capital you can redeploy, without moving out or taking on new debt.

For CFOs, that means an alternative financing route that improves liquidity without touching existing credit lines. For warehouse and supply chain managers, it means the same site, the same racking layout, the same dock doors, the day after closing as the day before.

• Valuation. The investor assesses the property’s market value, condition, and lease-ability, factoring in location, building specifications and remaining useful life.
• Sale. Ownership of the property transfers to the investor at an agreed price, typically reflecting current market yields for logistics real estate in that location.
• Simultaneous lease-back. At the same signing, the seller becomes the tenant under a new long-term lease, usually 10 to 20 years, with rental terms, indexation and maintenance responsibilities agreed upfront.
• Capital deployment. The seller receives the sale proceeds as cash and can redeploy it immediately, whether into expansion, automation, working capital or debt reduction, without a gap in operations at the site.

• Unlocks capital tied up in real estate for reinvestment in core operations. Warehouses and distribution centres are illiquid assets on a balance sheet; sale-and-leaseback converts that value into cash that can fund growth directly.
• Improves balance sheet liquidity without taking on additional debt. Because it’s a sale, not a loan, it doesn’t add leverage or covenants, which matters when existing credit facilities are already stretched.
• Retains full operational continuity. No relocation, no disruption to picking, packing or dispatch schedules, and no downtime for staff or equipment.
• Can be combined with facility upgrades or expansion as part of the same transaction. Roof-mounted solar, extra dock doors, mezzanine space or automation infrastructure can often be built into the deal structure.

A logistics operator owns a 40,000 sqm distribution centre valued at roughly €25 million. Instead of taking on a mortgage to fund a new automation project, the company sells the property to an investor and signs a 9‑year lease-back at a market rental rate. The €25 million in proceeds funds the automation rollout and a working capital buffer, while the company continues operating from the same building under the same operational conditions, with no interruption to throughput during the transaction.

Vs. a bank loan or mortgage. A loan adds debt and usually requires collateral and covenants; sale-and-leaseback removes the asset from the balance sheet entirely and doesn’t affect existing credit lines, though it does mean giving up ownership.

Vs. a straight sale (no lease-back). A straight sale releases capital too, but forces relocation. Sale-and-leaseback releases the same capital while keeping the company in place, which matters when the site is operationally difficult or costly to replace.