Sale and leaseback is the way out of debt for commercial property owners

April 2020

The Government’s range of measures designed to bolster the economy during the pandemic are unprecedented in their scale. The extension of the furlough scheme will be welcome news for many SME business owners, as will the grants available for small businesses. New schemes are announced almost daily, with the latest being a £750 million fund available for smaller businesses focused on research and development.

However, there’s no doubt that many business owners will be reluctant to take on more debt. A loan is, after all, just a loan, and it will need to be paid back at a time when the economy is likely to still be in the early stages of recovery.

So what are the alternatives? A potential solution for owners of freehold office, factory or retail premises is to sell their building quickly and enter into a lease of exactly the same premises. Investors would pay a proper market purchase price on the proviso that the seller enters into at least a 5 year lease.

Many SME business owners may not have considered this as an option but it is a great way for them to raise capital quickly without being dependent on the banks or government handouts. It also offers a way out for those approaching retirement, as if you have someone in place to take over the business after they retire, it’s just a question of a change of landlord.

Finding the right investor who will give you the opportunity to thrive in your current premises could make the difference between success or failure.

Any Worcestershire commercial property owner interested in finding out more about sale and leaseback is invited to contact us for a general no-obligation discussion on 01905 676169 or via email at

GJS Dillon’s Worcestershire Commercial Property Market Report 2020 is available here

With offices in Bromsgrove, Droitwich and Worcester, GJS Dillon was the Estates Gazette’s ‘Most Active Agent in Worcestershire’ award winner for 2019. It offers a comprehensive commercial property service, including commercial agency, acquisition and business relocation, commercial property management, valuations and landlord and tenant rent reviews, and unrivalled geographical coverage, throughout Worcestershire and along the M5 and A38 corridors.  

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