Document background
The Sale And Leaseback Agreement is a strategic financial instrument used in the Philippines when a property owner seeks to unlock capital from their real estate assets while retaining operational control through a long-term lease arrangement. This document type is particularly relevant in commercial scenarios where companies need to improve their balance sheet position or require significant capital injection without disrupting their business operations. The agreement must comply with Philippine property law, including the Civil Code of the Philippines and various tax regulations. It typically includes comprehensive provisions covering both the sale transaction and the subsequent lease arrangement, including purchase price, payment terms, lease duration, rental payments, maintenance obligations, and potential buy-back options. The document is commonly used in commercial real estate, industrial properties, and corporate restructuring situations.
