Sale and leaseback of business property

A sale and leaseback is a solution for businesses that need capital, own the property they operate from, and cannot get a conventional loan on workable terms. You sell the property to a financing partner and lease it back at the same time. You carry on in the same warehouse, office or premises. Where the contract allows, you can buy the property back later.

It is a powerful tool, but also a serious decision. We work only with businesses that have a Czech company ID (IČO). ICORENT is not a bank and not the buyer. We help you find a suitable financing partner, negotiate the terms and understand them.

When a leaseback can help

Clients typically consider it when:

• most of their wealth is tied up in property and there is little free cash,
• a secured loan is not possible, for example because of existing pledges or the state of the business,
• they need to settle liabilities and want to keep operating from the same location,
• they have a concrete plan to stabilise the business during the lease and prepare for buyback.

If it is not clear how you will pay the rent, that needs addressing at the very start. We would rather tell you it does not make sense than see you lose the property needlessly.

How it works with us

We check the property and the company

We start with the title deed. In Czechia this is the list vlastnictví (LV), an extract from the Land Registry (katastr nemovitostí). We look at ownership, mortgages, enforcement orders, easements and any plomba, a flag showing a pending registry proceeding. We verify the company in ARES (the business register), the insolvency register and the VAT register.

We negotiate the terms

With the financing partner we work on three things together: the purchase price, the rent and lease term, and the buyback conditions. We explain everything clearly and side by side.

We see you through the transfer

We help with contracts and coordinate with the lawyer and the Land Registry. The purchase price is usually paid through an escrow arrangement to protect both sides.

Leaseback or secured loan?

Both tools release capital from property, but they work differently:

• With a secured loan you remain the owner. The lender only holds a pledge, which is removed once the loan is repaid.
• With a leaseback you transfer ownership. You pay rent and get the property back only under the terms of the contract.

If a secured loan is available on reasonable terms, it is usually the gentler option for an owner. A leaseback makes most sense where a loan does not work out, or where owning the property is not essential to you. We are happy to compare both side by side.

What affects the cost

With a leaseback you need to look at the whole picture:

• the gap between the property's market value and the purchase price,
• the level of rent and how it may change over time,
• the buyback price and when and how it can be exercised,
• valuation, legal, escrow and Land Registry fees,
• tax implications of the sale and lease, especially VAT and income tax,
• our fee, which we always state in advance.

The terms depend mainly on the type and location of the property, how easily it would sell, the length of the lease and how stable your business is.

Risks

• You are no longer the owner. The property belongs to the financing partner. If you miss rent or breach the contract, you can lose both the right to use it and the option to buy it back.
• Buyback is not automatic. Only what is in the contract applies. Watch the deadlines and conditions.
• Total cost. Rent plus the buyback price can be much higher than the original sale price.
• Tax. Both the sale and the lease can have tax consequences that you should understand beforehand, particularly if your company is foreign-owned.

We recommend having the contracts reviewed by an independent lawyer and the tax impact by a tax adviser. If you do not read Czech, insist on a translation. Do not rush to sign.

Documents to prepare

• your IČO and basic company details,
• the title deed number (LV) or the property address,
• information on existing pledges and liabilities,
• your latest tax return or financial statements,
• an overview of the income from which you will pay rent,
• any existing lease agreements on the property.

Basic information is enough for the first consultation. We add further documents step by step.