Property Insights - further your understanding of real estate and finance

A building's ‘value’ depends entirely on who's asking. What it cost to build, what an insurer would pay to reinstate it, what a buyer would pay for it empty and what it is worth with a leaseback attached are all genuinely different numbers. In this post we will look at how they differ and why it is important to rely on the right figure. How can there be so many different valuations? A single building will have five or six defensible figures that are deemed to be ‘valuations.’

A sale and leaseback is when a business sells a property it owns and immediately leases it back from the buyer. The business keeps operating from the same building — it just no longer owns it. This releases working capital to the business in exchange for paying rent going forwards. The key consideration for any business when looking at a property transaction is that it does not disrupt on site operations. A sale and leaseback converts an illiquid asset (property) into capital