The sale and leaseback strategy is often seen as the territory of large corporate investors, but in reality it’s a surprisingly accessible strategy in UK commercial property investing.

Having spent years working with sale and leaseback structures at corporate level and later seeing how effectively they can be used by SME investors and business owners, it’s clear that the principles are the same - only the scale is different.

Mention it in a room full of business owners and you’ll often hear excitement: “Release capital without moving.” Mention it to investors and you’ll hear talk of “secure income and strong yields.” And both sides are right — when it’s done properly and for the right reasons.

But sale and leasebacks also need careful thought and, importantly, aren’t suitable for every business or investor.

What Sale & Leaseback Actually Is
At its core, sale and leaseback is simple. A business owner sells the commercial property they operate from to an investor and simultaneously signs a lease to remain in occupation as the tenant. The business receives a capital sum from the sale. The investor, in turn, receives a property with an agreed tenant and lease in place from day one.

On the surface, it is a neat solution:
• The business releases capital without disruption
• The investor acquires income immediately
• Both parties have they’ve improved their position

Sale and leasebacks can be found openly advertised on business buying websites and on commercial property portals. Direct to vendor letters can also be a useful way to unlock these opportunities.