Commercial Office Leasing and Car Park Leasing

A commercial lease, which allows the use of a commercial office or car park, brings legal documents that balance the rights of the landlord and tenant. These documents provide for any eventualities that arise during the agreement, such as damage to the property or if one party defaults.

Usually, a landlord will provide the tenant with a lease with terms relating to rent, the length of the lease, permitted use, deposits, maintenance requirements and termination procedures. More specifically, the following must be considered when engaging with a leasing arrangement for an office or car park:

• Rights and obligations of the owner of the property and the tenant who will occupy the property
• Payment of rent
• Length of the lease
• Clauses for maintenance or repair
• Whether the lease proposal is binding
• Preparation fees
• Make good provisions or clauses that require the tenant to remedy damages to the property 

Commercial and Industrial Acquisition and Sales

An acquisition is where the shareholdings or assets of a company are acquired by another. Acquisitions come in two forms:

• Off-market takeovers where a potential acquirer offers to acquire the shares of the target company
• Scheme of arrangement where the shareholders vote for a merger

The following regulators are involved in approving and determining the way in which acquisitions may occur:

1. Australian Securities and Investment Commission 
2. Takeovers PanelAustralian Competition and Consumer Commission
3. Australian Securities Exchange 
4. Foreign Investment Review Board

The acquisition may also include divestment of major industrial assets. The decision to divest or sell vary and include bankruptcy, increasing capital, mitigating loss of profits or addressing the failure to attain synergy. When selling a major asset, the following should be considered:

1. The basis for the decision to divest accurate valuation of the business and assets should be done prior to negotiation with prospective buyers. 
2. Information Memorandum detailing the asset’s history and utility
3. Whether potential buyers intend to structure finance in creative ways by incorporating corporate buyers, private equity or foreign investment
4. Transaction friction arising from complex areas of branding, licences and other relevant agreements
5. How the deal will be closed and by whom

Off the Plan Acquisition and Sales

An off-the-plan contract is a contract for the sale of an asset that has been created at the time the contract is entered into.

Potential buyers should consider the following when purchasing property off the plan:

• Whether changes can be made to the asset
• Whether the buyer has the ability to assist during the construction
• Visiting rights
• Financing arrangements
• Clauses governing delays or deviations away from agreed designs
• Clauses governing whether the property can be sold to another party

When considering buying off the plan, an expression of interest should be entertained as there will be no obligation on either party to sell or purchase.