2020-09-14 General Committee Agenda

GENERAL COMMITTEE MEETING AGENDA                                           14 SEPTEMBER 2020




Figure 3 – Photo of Premises

The proposal involves a whole-of-building lease to provide the lessee with full control of the
premises to establish a new data centre.

Preliminary agreement on lease terms has been reached with OneQode and a draft lease
prepared. The primary lease provisions proposed are as follows:

 Lease Provision                    Proposal
 Premises:                          Part of Lot 1 SP221081
                                    shown as Lease A on the Survey Plan
 Annual Rent:                       $34,000 plus GST
 Nett Lettable Area:                97m2
 Indicative Commencement Date:      25 September 2020
 Rent Free Period:                  6 months
 Initial Lease Terms:               5 years
 Options to Extend:                 2 x 5 years
 Market Rent Reviews:               Fixed increases at 3.5% annually.
 Permitted Use:                     Data Centre

The agreed rent achieves a fair market value, as determined by an independent market valuation.
Financial due-diligence company checks conducted by independent advisors, Illion Australia,
indicate the lessee has sound financials and is unlikely to default.

OneQode proposes to undertake substantial building and services upgrades at its cost to
contemporise and bring the facility up to its specification. The proposed 6 month rent free period
is intended to help offset the tenant’s establishment costs.

It is recommended Council agrees to enter a lease with OneQode Assets Pty Ltd in line with the
above provisions.




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