Meeting papers

SERVICES & ORGANISATION COMMITTEE MEETING                                     10 SEPTEMBER 2024


5.1     SUNRISE SHOPS - SHOP 5 LEASE RENEWAL


Author              Commercial Business Advisor, Robyn Mercer
                    Commercial Business Services | Corporate Services Department
Index               Subject 46.01 Lease
Attachments         None


EXECUTIVE SUMMARY
This report seeks approval for a lease renewal of Shop 5, Sunrise Shops to the current lessee,
Australian Leisure and Hospitality Group Pty Limited. The liquor store offering is a strategically
important tenancy for Sunrise Shops, driving consistent foot traffic and maintaining a steady
customer base. This is critical to support the product mix, economic and commercial performance of
the Sunrise Shops precinct and contribute to the financial sustainability of the broader tenancy mix.
Retaining Australian Leisure and Hospitality Group Pty Limited as a tenant aligns with Council's
strategic objective to maximise commercial returns from its assets, foster a vibrant and economic
resilient retail environment and provide local community facilities.

RECOMMENDATION
That Council note the report by the Commercial Business Advisor to the Services and Organisation
Committee Meeting dated 10 September 2024 and
      A. Approve the lease renewal to Australian Leisure and Hospitality Group Pty Limited for Shop
         5, Sunrise Shops for three (3) years commencing 2 January 2025;
      B. Authorise the Chief Executive Office to award a subsequent two (2) one (1) 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.


REPORT
Australian Leisure and Hospitality Group Pty Limited has been the lessee of Shop 5 since 2008,
consistently proving to be a valued and reliable tenant with a premium retail offering. The current
lease for Shop 5 expires on 1 January 2025. This report seeks Council approval for a lease renewal
consisting of a three (3) year base period with two (2) one (1) year extension options, commencing
on 2 January 2025.

The liquor store plays a crucial role in maintaining a consistent pattern of visitation and a stable
customer base at Sunrise Shops. Unlike other retail offerings that may experience fluctuations in
customer traffic, the liquor store benefits from regular and repeat customers. This consistency is not
only important for the tenancy itself but also positively impacts other tenancies within the precinct.
The cross-patronage that occurs as visitors engage with various retail offerings during their visit is
essential for sustaining the vibrancy of the precinct. The steady foot traffic generated by the liquor
store helps stabilise revenue streams across the precinct, contributing to the overall financial and
commercial health of Sunrise Shops.

Given the liquor store's importance in driving foot traffic, fostering cross-patronage and maintaining
a stable customer base, it is recommended that Council proceeds with the proposed lease renewal.




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