In a sale-leaseback transaction, who becomes the owner of the asset after the sale?

In a sale-leaseback transaction, the new buyer becomes the owner of the asset after the sale. The key feature of this arrangement is that the original owner, typically a business, sells a property to another party (the buyer) and simultaneously enters into a lease agreement to lease the same property back from the new owner. This allows the original owner to free up capital that was tied up in the real estate while still maintaining occupancy and operational control of the property.

The new buyer acquires full ownership rights to the property, including the ability to manage, lease, or sell it in the future, while the original owner continues to operate as a tenant. This transaction can be beneficial for both parties; the seller gains liquidity from the sale, while the buyer often receives a steady income stream from lease payments. Recognizing this structure helps one understand the dynamics of real estate financing and investment strategies.