Sale and leaseback versus a secured loan in the UAE
Release capital through an asset sale and continuing lease or retain ownership and borrow against the asset.
A sale and leaseback converts ownership into cash while preserving operational use through a lease. A secured loan preserves ownership and raises debt against the asset and cash flow. The decision depends on valuation, lease economics, borrowing capacity, control, accounting and the long-term importance of the asset.
Side-by-side decision table
| Decision factor | a sale and leaseback | a secured loan |
|---|---|---|
| Ownership | Transfers to the buyer-landlord | Remains with the borrower, subject to security |
| Cash raised | Driven by sale value and lease terms | Driven by lender advance rate and debt capacity |
| Ongoing payment | Rent under the lease | Interest, fees and principal under the facility |
| Control | Use governed by lease terms | Ownership retained, subject to covenants and security |
| End position | Lease expiry, renewal or agreed purchase mechanics | Loan repayment and security release |
| Core sensitivity | Rent escalation and occupation term | Debt service, valuation and covenant headroom |
When a sale and leaseback may fit
- The asset is operationally important and ownership is not essential
- A buyer values the asset more highly than a lender's advance
- Long-term occupation terms can be agreed
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When a secured loan may fit
- The sponsor wants to retain ownership and upside
- Cash flow supports debt service
- The available loan proceeds meet the funding requirement
How to decide
Compare net proceeds, tax and transaction costs, lease payments, debt service, control rights, valuation exposure and the full exit position. Obtain legal, tax and accounting advice on the specific asset and structure.
What to prepare
Prepare title and valuation, tenancy and operating information, asset cash flow, proposed lease terms, existing security, debt capacity, use of proceeds and the long-term operating plan.
UAE execution context
UAE land registration, mortgage, leasing, tax and accounting consequences depend on the emirate, asset and parties. Confirm the structure with qualified legal, tax and accounting advisers before execution.
Matchpoint mandate fit
Matchpoint undertakes corporate finance, financing and M&A mandates from USD 5m upwards, subject to evidence, transaction readiness, jurisdiction, applicable regulation, capacity and a written engagement. Review the mandate criteria before submitting a transaction.
Related pages
Frequently asked questions
The seller can continue using the asset under the agreed lease. Occupation rights, renewal, maintenance and default terms require careful negotiation.
The answer depends on asset value, lease terms, lender advance rate, existing debt, transaction costs and credit quality. Compare net proceeds under both routes.
Yes. Matchpoint undertakes mandates from USD 5m upwards and can compare capital-provider appetite, subject to engagement and mandate fit.
Last updated: July 2026.
Discuss a mandate
Speak to a partner about how this applies to your transaction. A partner responds personally, typically within one business day.
