Work out sale and leaseback value instantly with clear inputs, formula shown and shareable results.
In a sale and leaseback the price is set by capitalising the rent the seller agrees to pay: a lower cap rate means a higher price but a rent commitment that must be sustained. Netting transaction costs and comparing with book value gives the accounting gain, and the rent as a share of net proceeds is effectively the cost of the capital raised.
Sale price
Price = annual rent / capitalisation rate
Net and gain
Net = price x (1 - transaction costs); gain = net - book value
Price = annual rent / capitalisation rate. In a sale and leaseback the price is set by capitalising the rent the seller agrees to pay: a lower cap rate means a higher price but a rent commitment that must be sustained.
No. Price and rent move together, so pushing the price up means agreeing a higher rent for the whole lease term. It is a financing decision, not just a disposal.
This calculator takes 4 inputs: Rent under the leaseback, Investor capitalisation rate, Transaction costs, Book value of the asset. The pre-filled defaults are a realistic worked example — replace them with your own site or project figures.