Sale-and-Lease-Back (SLB) in warehouse logistics

Definition and functionality: The principle of sale-lease-back

In a sale-and-lease-back, a company (usually a logistics company or a producing owner-occupier) sells a property that is necessary for operations – such as a central warehouse or a transshipment hall – to an investor. At the same time as the purchase contract, a long-term lease is signed, which allows the seller to continue using the property without interruption.

At its core, it is internal financing in which hidden reserves are revealed. From a legal point of view, a change of ownership takes place, while the economic sovereignty of use remains with the operating company through the lease agreement (often designed as a triple-net contract).

Strategic Value for Contract Logistics

In contract logistics, margins are often tight and investment cycles for automation technology (AutoStore, Sorter, AMR) are short. SLB offers decisive advantages here:

• Capital release: The capital tied up in concrete can be invested in the core business (IT, vehicle fleet, personnel) or in expansion.
• Balance sheet optimization: The sale reduces the investment intensity. Although IFRS 16 requires right-of-use assets to be capitalized, the inflow of cash often improves banks' ratings.
• Risk transfer: The residual value risk of the property at the end of its life cycle and the market value risk are transferred to the investor.

Focus on the logistics property: Requirements for the hall and location

Not every hall is equally suitable for an SLB process. Investors (often REITs, special funds or insurance companies) pay attention to third-party usability. A specialised high-bay warehouse is more difficult to sell than a standard logistics hall.

Key metrics for a successful SLB transaction:

• Hall height: Modern standards require at least 10 to 12 metres of lower edge truss (UKB).
• Floor load capacity: 5 to 7 tons per square meter are common.
• ESG compliance: Photovoltaic systems on the roof, heat pumps and LED lighting will no longer be an option in 2026, but a prerequisite for attractive yields.
• Location: The proximity to transport hubs (motorway junctions, rail, port) determines the multiplier of the sales price.

Financial Parameters: Yields, WALT and Rental Structure

The valuation in the SLB procedure differs from the pure real estate market, as the creditworthiness of the tenant plays a central role.

• WALT (Weighted Average Lease Term): Investors are usually looking for terms of 10 to 15 years. A longer lease increases the sales price, but also binds the company to the location for longer.
• Rental price: This is based on the market comparative rent. An artificially inflated rent to achieve a higher purchase price is critically questioned by banks and auditors.
• Expected returns: Currently (as of 2026), prime yields for first-class logistics properties range between 4.5% and 5.5%, depending on location and creditworthiness.

The process: From valuation to closing

An SLB procedure is complex and usually takes 4 to 9 months.

1. Preparation: Creation of a data room (land register, building permits, fire protection concepts).
2. Indicative valuation: Determination of the market value by experts.
3. Marketing phase: Targeted approach to investor clusters.
4. Due Diligence (DD): The investor checks the property (Technical DD), the environment (Environmental DD) and the tenant's creditworthiness (Financial DD).
5. Notarization: Simultaneous conclusion of purchase and rental contract.

Risks and pitfalls for logistics companies

Despite the advantages, there are critical points that professionals must consider:

• Loss of location control: After the lease expires, there is no automatic entitlement to renewal unless options have been agreed.
• Maintenance obligations: In "triple-net" contracts, the tenant often bears the "roof and compartment", i.e. also the costs for major renovations.
• Tax consequences: The disclosure of hidden reserves leads to immediate taxation of the capital gain.

Q&A – Practical questions about sale-and-lease-back

Question: Is SLB also worthwhile for older existing halls?

Answer: Yes, as long as the location is attractive and a refurbishment concept is in place. Investors often calculate with a higher yield and shorter lease terms in order to carry out a new development (brownfield development) later.

Question: How does IFRS 16 affect sale-and-lease-back?

Answer: According to IFRS 16, the tenant must account for the right of use as an asset and the lease liability as a liability. The "off-balance" effect is thus lower than before, but the liquidity advantages remain.

Question: Can I buy back the hall after 15 years?

Answer: This can be contractually regulated via a buyback option. However, this often reduces the sale price, as the investor is limited in his exit strategy.

Conclusion and practical value

The sale-and-lease-back procedure is much more than emergency financing. It is a strategic tool for capital allocation. At a time when logistics real estate is highly sought after as an asset class, SLB allows companies to achieve record prices and put this capital into the digital transformation of their warehouse operations.

The combination of real estate expertise and logistics expertise makes SLB a lever for sustainable growth and competitiveness in contract logistics.