2021-04-12 General Committee Meeting Agenda

GENERAL COMMITTEE MEETING AGENDA                                                     12 APRIL 2021


6    REPORTS DIRECT TO GENERAL COMMITTEE



3    PROPOSED LEASE - SHOP 8, SUNRISE BEACH SHOPPING CENTRE

Author            Property Advisor – Commercial Property, Robyn Mercer
                  Corporate Services Department

Index             ECM/Subject: 46.01 Leases

Attachments       1.   Application Support Summary



EXECUTIVE SUMMARY
Not applicable.

RECOMMENDATION
That Council note the report by the Property Advisor – Commercial Property to the General
Committee Meeting dated 12 April 2021 regarding the lease of Shop 8, Sunrise Neighbourhood
Shopping Centre and:
A.   Agree to enter a commercial lease of the premises to Tanglewood Company Pty Ltd, for a five
     (5) year term, as generally outlined in the report;
B.   Agree to an initial rent-free period of 6 months; and
C.   Authorise the CEO to award up to 4 subsequent lease extensions each of 5 years, subject to
     the lessee complying with the terms of the lease.



REPORT
The purpose of this report is to seek Council approval to enter into a new lease for Shop 8 - Sunrise
Neighbourhood Shopping Centre. Shop 8 is the largest tenancy in the centre comprising 305m 2, is
the centre’s key anchor tenancy and has traditionally been leased as a convenience store/grocer. In
recent years the shop has been vacant which has affected overall centre performance.

Colliers International is Council’s managing agent for the centre and have been actively seeking new
tenants for the vacancy. Colliers have received an offer to lease from a local business, Tanglewood
Company Pty Ltd, who are proposing to lease Shop 8 for wholesale and retail food production,
grocery, organic and wholefoods purposes.

In accordance with their role as managing agent, Colliers has undertaken an assessment of the
lease proposal and supporting information as per the Tenant Assessment Criteria noted in
Attachment 1. The proposal scored highly against the criteria and Colliers notes in their opinion
‘Tanglewood are an excellent fit for the Sunrise Beach Shops’.

The agreed rent achieves a fair market value in line with an independent market valuation. The
primary lease provisions proposed are as follows:




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