Meeting papers

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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