According to the observation made of the recent sale and leaseback transactions in the real estate sector, it can be stated that a majority of corporate and professional occupiers predominantly incorporate this transaction process in order to gain potential returns of their investments. The sale and leaseback transactions can be defined as the process of corporate occupiers of the commercial belongings to sell their assets and occupy certain properties through performing a long-term lease with a real estate financier (Tipping &. Bullard, 2007). According to the present-day context, it has been observed that a range of investment-grade as well as below-investment-grade real estate corporations are considering sale and leaseback transactions to be an essential corporate financing tool. Moreover, the modern real estate corporations also implement sale and leaseback transactions as an effective alternative to their financing appeal process in order to unlock the value of their real estate properties and invest the proceeds to accomplish a good amount of returns of their investments (Mansour &. Scott, 2012). .
The sale and leaseback transactions can be defined as a practice through which a public or corporate corporation sells its assets to another corporation and then again leases the sold property. In this type of transaction, the lease owner typically a financial institution or leasing company provides lease to the previous owner of the property. The sale and leaseback transactions of real estate corporations may take place due to various reasons including obtaining access to equity as well as capital in order to make re-investment at the time of use of the assets or for retaining possession of the property (Ray &. Rowley, 2007). Moreover, the sale and leaseback transactions may also offer the right to lease back the assets from the purchaser after accomplishing the selling process with a relevant understanding among both parties. .