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SUNRISE SHOPS - SHOP 4 REVISED LEASE RENEWAL · Report
SERVICES & ORGANISATION COMMITTEE MEETING 10 JUNE 2025
7.1 SUNRISE SHOPS - SHOP 4 REVISED LEASE RENEWAL
Author Commercial Business Advisor, Robyn Mercer
Economic Development and Destination Management | Strategy and
Environment
Index 46.01 Lease
Attachments None
EXECUTIVE SUMMARY
In April 2025, Council approved a lease renewal for Shop 4, Sunrise Shops, currently occupied by
Sunrise Dental Care Pty Ltd. This report seeks Council’s endorsement to amend the previously
approved lease terms.
The lessee has requested a revised lease structure consisting of two consecutive five (5) year terms,
in place of the five (5) year term with two (2) optional two (2) year extensions endorsed in April 2025.
This change is necessary to meet the requirements of the lessee’s financier, who has advised that
a 10-year lease commitment is necessary to obtain funding for planned capital investment.
The proposed investment includes significant equipment upgrades and shopfront improvements,
which are critical to maintain service quality, comply with regulatory standards and ensure the long-
term sustainability of the practice. Approving the revised lease term will enable this investment and
support the continued provision of high-quality dental services at Sunrise Shops.
RECOMMENDATION
That Council note the report by the Commercial Business Advisor to the Services & Organisation
Committee dated 10 June 2025; and
A. Note that this resolution supersedes the Council resolution at the Ordinary Meeting dated 17
April 2025 regarding the lease renewal term for Shop 4, Sunrise Shops;
B. Approve the lease renewal to Sunrise Dental Care Pty Ltd for Shop 4, Sunrise Shops for five (5)
years commencing 1 July 2025;
C. Authorise the Chief Executive Officer to award a subsequent one (1) by five (5) year extension
of the lease subject to the lessee complying with the terms of the lease; and
D. Apply the exception to the requirement for tendering of the lease under Section 236 (1) (c) (iii)
of the Local Government Regulation 2012 as the renewal is to the existing tenant.
REPORT
In April 2025, Council resolved to approve a lease renewal for Shop 4, Sunrise Shops, to Sunrise
Dental Care Pty Ltd for an initial five (5) year term with two (2) additional two (2) year extension
options. Subsequent to this decision, the lessee has formally requested a revision to the lease term.
The lessee is seeking a total lease term of 10 years to satisfy the requirements of their financial
institution and obtain necessary finance by demonstrating lease security over a longer term.
Specifically, the extended term is essential to securing commercial finance for proposed capital
improvements, including:
• Replacement and modernisation of core dental equipment.
• Upgrades to the shopfront and internal fit-out to meet current health and accessibility standards.
• Enhancements to service delivery and patient experience.
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Page 2
SERVICES & ORGANISATION COMMITTEE MEETING 10 JUNE 2025 The dental practice continues to play an important role in the commercial mix of Sunrise Shops, offering essential services that drive reliable foot traffic and support surrounding businesses. As an established and professional operator with a track record of strong performance since 2015, Sunrise Dental Care Pty Ltd represents a low-risk, high-value tenancy. Supporting this investment through a revised lease term aligns with Council’s commercial objectives, including: • Strengthening asset value through private capital improvements. • Enhancing precinct amenity and service quality. • Increasing tenure stability and reducing vacancy risk. • Supporting local employment and healthcare access. Given the long-term benefit to both the precinct and the community, it is considered commercially and strategically appropriate to support the lessee's request for a 10-year term structured as two consecutive five (5) year terms. Link to Corporate Plan Theme No. 5 - Excellence This theme focuses on customer experience, financial sustainability, innovation and technology, levels of service, governance, our employees and volunteers, funding streams and asset management practices. Renewal of the lease aligns with a key action of the Excellence theme of Council's Corporate Plan to increase the share of operating revenue to be generated from sources other than rates or charges. Previous Council Consideration Ordinary Meeting Minutes, 17 April 2025, Item 7.1, Page 1 That Council note the report by the Commercial Business Advisor to the Services & Organisation Committee dated 8 April 2025 and; A. Approve the lease renewal to Sunrise Dental Care Pty Ltd for Shop 4, Sunrise Shops for five (5) years commencing 1 July 2025; B. Authorise the Chief Executive Officer to award a subsequent two (2) by two (2) year extensions of the lease subject to the lessee complying with the terms of the lease; and C. Apply the exception to the requirement for tendering of the lease under Section 236 (1) (c) (iii) of the Local Government Regulation 2012 as the renewal is to the existing tenant. Ordinary Meeting Minutes, 18 August 2016, Item 4, Page 9 That Council note the report by the Property Officer to the Services & Organisation Committee Meeting dated 9 August 2016 and approve the proposed transfer of the lease for Sunrise Neighbourhood Shopping Centre, Shop 4 – Dentist, from Tom Wilkinson Dental Pty Ltd to Sunrise Dental Care Pty Ltd. Ordinary Meeting Minutes, 4 June 2015, Item 10, Page 9 That Council note the report by the Property Officer, Property and Facilities to the Planning & Organisation Committee Meeting dated 26 May 2015; and A. Approve the new lease agreement to Sunrise Beach Hair Artistry for Shop 3, Sunrise Neighbourhood Shopping Centre for 3 years commencing 9 June 2015 (with a 3 year option); B. Approve the new lease agreement to Tom Wilkinson Dental Pty Ltd for Shop 4, Sunrise Neighbourhood Shopping Centre for 5 years commencing 1 July 2015 (with a 5 year option); C. Approve the new lease agreement with Meats at Sunrise Pty Ltd for Shop 7, Sunrise Neighbourhood Shopping Centre for 5 years commencing 8 June 2015 (with a 5 year option); and
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SERVICES & ORGANISATION COMMITTEE MEETING 10 JUNE 2025
D. Apply the exception to the requirement for tendering of these leases under section 236 (1) (c) (iii)
of the Local Government Regulation 2012 as the lease renewals are to existing tenants.
Finance
The proposed lease will secure ongoing revenue for Council that will be recognised in financial year
budgets 2025/26 to 30/31 and will maintain current levels of commercial yield. Under Section 236
(1) (c) (iii) of the Local Government Regulation 2012, Council is not required to tender for the leasing
of the property if it is re-leasing to an existing tenant. In accordance with the requirements for this
exception, Council has obtained a market value as determined by an independent valuer.
Risk & Opportunities
The proposed lease poses minimal risk for Council as it secures ongoing tenancy of Shop 4 and
provides service continuity for the lessee and community.
Human Rights
Human Rights Compatibility Statement
In developing this Report, the subject matter has been considered in accordance with the
requirements of the Queensland Human Rights Act 2019. It is considered that the subject matter
does not conflict with any human rights and supports a human rights approach to decision making
by Council. Council representatives will endeavour to act and make decisions under this report in a
manner that is compatible with human rights. This report should be read in conjunction with
Council’s Human Rights Policy.
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