Deal or no deal?

The pros and cons of sale-and leaseback arrangements

Sale-and-leaseback deals by companies have become increasingly common. Interest has been further stimulated in the UK by proposed changes that will make it easier for property companies to become Real Estate Investment Trusts, or REITs, which enjoy considerable tax advantages. However, the economic and financial fundamentals offer a better guide than taxation as to when and where such deals make sense. Based on work Frontier has done with a number of clients, this bulletin works through the basic issues.