Due diligence considerations

(Tenants perspective)

1. Lessor consents required to:

(a) Assignment.

(b) Alterations.

(c) Signage.

(d) (Change of trading name) - Riccarton

(e) (Change of use)/extension of use.

2. Assignment

(a) Guarantees of directors and shareholders required.

(b) Prohibition on assignment within certain periods eg 12/24 months from c.date - Ric N/lands

(c) Landlord right of first refusal to take Lease back N/Lands.

(d) Key money on assignment.

(e) Some have rent reviews on assignment.

3. Prior breaches by Lessee or non performance of obligations eg maintenance/redecoration any requisitions by Councils

4. What alterations additions made that Landlord will/may require removed?

5. What fixtures and fittings are owned by tenant (and chattels?)

6. Evidence of rent reviews

7. No noise/amplifiers restrictions in some Leases

8. Active trading requirements

9. Costs on docs to be completed.