What do you mean by leaseback? ..

Specific form:

This is the most primitive form of leaseback, that is, after the investor and the developer sign a shop sales contract (mainly for existing shops), the developer promises to give the investor a certain rental return (about 8%- 12%) every year in the next three to five years, and during this period, the operation, management and use right of the shop are all owned by the developer. The essence of this form is to develop a business with a certain rental return to buy out the management rights in the next few years and then unify them.

Advantages:

1. Give investors enough confidence.

2. The management right of the store can be recovered, and the separation of ownership and management right is conducive to the unified image, investment, operation and management of the store, and to the integration of various resources in a short time, so that the whole store can prosper and establish the image of the whole store.

3. As a major buying point of store sales planning, leaseback has been tried and tested in all major cases of store sales, which has greatly promoted store sales.

Disadvantages:

1. Concession brings great business risks to developers, which requires the financial strength and management ability of developers. However, the reality is that the rent for leaseback is quite high (above 8%), and the prosperity of a shop usually needs a running-in period, which is the so-called field-keeping. During this period, it is necessary to attract businesses to operate at low rent or even rent-free, so it is quite difficult for developers to make profits during this period, and it can even be said that they only lose money. Therefore, the practice of many developers is to raise the selling price by about 30% before returning the rent, which is the risk of paying the developer in advance.

2. The lease-back period is usually three or five years, but the tenants' willingness to rent is varied, which makes it difficult to rent shopping malls.

3. After the lease-back period ends, the right to use the business will fall back to the investors, which means that the future commercial developers are not binding on the owners, which will bring difficulties to the future commercial management. In addition, after the lease-back period, the shops will gradually flourish, and the high-profit developers will not be able to refer to it, which actually makes the developers play a role in getting married.

4. This traditional leaseback form has been used in the market for a long time, which is not new to investors, and the state stipulates that it is not allowed to sell unfinished properties in the form of leaseback, so this leaseback form remains to be discussed.