InformatIon GuIde 2015/16 - Property NSW Rocks... · • place management • heritage conservation...

InformatIon GuIde 2015/16a GuIde for tenants on property matters

Contents

1 Custodianship 2 About The Rocks

2 Getting started 4

3 Complying with your lease terms 5

4 Periodic reviews 8

5 Essential service requirements 9

6 End of lease term 10 7 Caring for The Rocks – keeping the precinct clean, safe and secure 13

8 Activating The Rocks – events and activities in the public domain 14

9 Promoting The Rocks – SHFA’s annual marketing program 18

10 Promoting your business – cooperative marketing opportunities for tenants 20

11 Glossary 22

12 Map of The Rocks 24

Information Guide 2015/16 (As at 23/6/16) 1

1aBout tHe roCKs The Rocks is an iconic location, situated between the two most recognisable symbols of Australia: Sydney Harbour Bridge and Sydney Opera House.

The Rocks precinct:

• is 26 hectares of premium real estate

• has prime access to the CBD and all modes of transport

• adjoins Sydney Harbour

• is home to much loved cultural institutions.

More than 14 million people visit The Rocks each year and the precinct contributes $400 million per year to the NSW visitor economy.

As well as being Australia’s most significant historic precinct, The Rocks is a vibrant and contemporary space, well placed for future growth.

As a NSW Government agency, Property NSW works through SHFA to ensure the activation and profitability of The Rocks for the mutual benefit of tenants, visitors and the taxpayers of NSW.

2 Information Guide 2015/16 (As at 23/6/16)

As a Government agency, Property NSW works to ensure the activation and profitability of The Rocks for the mutual benefit of tenants, visitors and the taxpayers of NSW.

CustodIansHIpProperty NSW manages the assets of Sydney Harbour Foreshore Authority (SHFA), which was established under the Sydney Harbour Foreshore Authority Act 1998. SHFA is the landowner of The Rocks, working as part of Property NSW, in the role the custodian of the precinct.

Its main roles are:• place management

• heritage conservation

• urban renewal

• custodianship of NSW’s most state significant harbour foreshore areas.

SHFA through Property NSW, manages commercial and retail leases, and provides security, cleaning, building maintenance and other asset management services. It manages and curates two key heritage and cultural precincts – The Rocks/Circular Quay and Darling Harbour – which together attract over 41 million visitors annually.

SHFA through PNSW contributes $1.2 billion gross value added to the NSW visitor economy. Its corporate vision is to create extraordinary places in Sydney that the world talks about.

GET TO KNOW YOUR Property ManagerSHFA has contracted property management experts to manage properties in The Rocks. Your Property Manager is Alicia Kerti.

Once you have the keys to your new premises, there are a few things you need to know before you can get down to business.

Setting Up Your PremisesNew tenants in The Rocks should check off the following ‘to do’ list:

• Locks – arrange for the exterior door locks (barrels) to be changed and the existing barrels returned to your property manager.

• Utilities – have electricity, water and gas services, where applicable, transferred to your name.

• Garbage – unless you are in premises with a central garbage facility, you will need to arrange for garbage collection services.

Maintenance RequestsTenants are reminded that the extent of their obligations to undertake repairs and maintenance of their leased property is clearly set out in their lease. Where SHFA determines that maintenance or repair works are a tenant responsibility, the cost of the works will be recovered.

SHFA’s Customer Request Management System (CRMS) allows tenants to register their maintenance requests with SHFA by telephone, night or day. The tenant’s maintenance request is logged in CRMS and attended to by SHFA personnel in accordance with pre-determined Service Level Agreements (SLA), which are prioritised on a basis of urgency.

Most of SHFA’s maintenance services are carried out by private contractors, who provide the breadth of staff to respond promptly to maintenance jobs in The Rocks precinct as they arise.

GettInG started

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Contact 1300 655 995

Contact 0451 371 449


The Rocks Welcome Guide (As at 6/4/15) 5

3RENT Tenants pay the rent specified in their lease on a monthly basis – one month in advance, on the first day of the month.

If rent is not paid, SHFA will issue:

• a letter within one week seeking payment

• a reminder notice within two weeks

• an arrears notice within three weeks, and the property manager will review any reasons for non-payment.

SHFA will refer the matter to mercantile agent Dun & Bradstreet for debt recovery in the fourth week of the month where rent remains unpaid. Where a repayment plan is approved, it will be subject to interest at the rate prescribed under the lease, or where no rate is prescribed, the rate will be the current cost of capital applied by SHFA. Interest will apply to repayment plans covering both rent arrears and turnover rent arrears.

APPROvEd USAGEThe approved usage of a SHFA property by a tenant (e.g. food and beverage, commercial office, retail sales) is one of the essential terms of the lease.

If a tenant wishes to vary the approved usage in the lease, SHFA’s consent is required. The first point of contact is your property manager.

AUThORiSEd bUildiNG WORKS SHFA’s fitout coordinator will advise on how to apply for Landowner’s Consent (LC) for proposed works, and whether the works require a Development Application (DA) to the City of Sydney (CoS), or heritage approval.

SAlES fiGURESRetail tenants are required to forward their monthly and annual sales turnover figures to SHFA. To facilitate delivery of these figures SHFA sends:

• a sales request form to relevant tenants by the first day of each month

• a letter requesting a statement of annual turnover for the previous financial year at the beginning of each financial year.

To view SHFA’s request forms see Monthly and Annual Sales Figures.

CompLyInG WItH your Lease terms

SiGNAGESHFA’s signage policy for The Rocks promotes well-designed commercial signage that uses traditional materials in a contemporary approach. Signs are to complement the overall character of the precinct, as well as the historic character of the building.

The following types of signage are prohibited:

• third-party advertising

• freestanding mobile type signs, such as A-frames, when located in the public domain, or where they might constitute a safety hazard for pedestrians or shoppers.

For more information see The Rocks Signage Policy

APPROvAl fOR OUTdOOR SEATiNG (fOOd & bEvERAGE TENANTS) SHFA’s outdoor seating policy supports The Rocks village experience by enlivening the promenades, streetscapes and laneway areas of the precinct. It ensures:

• a consistent high standard of presentation

• that streetscape, buildings and courtyard spaces remain the dominant visual elements in the landscape

• safety

• appropriate pedestrian access.

All outdoor seating in The Rocks is subject to Development Application approval from the (CoS), with SHFA as the applicant. Tenants are not able to apply individually to CoS for outdoor seating approvals.

Tenants should contact their property manager about any additional outdoor seating requirements. Rates are revised annually by SHFA and are consistent with CoS rates (published annually).

For more information see The Rocks and Circular Quay Commercial Outdoor Seating Policy.

iNSURANCETenants must provide SHFA with a certificate of currency for public liability insurance and any other insurances (e.g. business insurance pack, glazing) on an annual basis. Failure to provide the certificates may result in a breach notice being issued to the tenant.


TRAdiNG hOURSTrading hours are set by a DA from the CoS or within the tenant’s lease. The trading hours in the lease reflect the minimum hours the tenant is required to trade. These hours can only be varied with SHFA’s consent.

lEASE vARiATiON Where a tenant wishes to vary a condition of the lease (e.g. reduction or increase in leased area or inclusion of an additional director on the lease) they should notify the property manager to initiate the following process:

• the tenant meets with the property manager to discuss the proposed terms of the variation

• the property manager submits a recommendation to SHFA

• if SHFA approves the variation, its solicitor prepares a lease variation and seeks confirmation that costs will be met by the tenant

• SHFA and the tenant execute the lease variation

• SHFA registers the variation with Land and Property Information.

ASSiGNMENTIf a tenant decides to sell their business, SHFA may allow the purchaser of the business to take up the tenant’s existing lease – provided there are no additional risks in the purchaser becoming the leasee.

Under the Retail Leases Act, SHFA is required to approve or reject the assignment of the lease by the tenant otherwise a deemed assignment will occur (i.e. the assignment will occur by force of the Act).

SHFA’s process for lease assignment is as follows:

• the tenant notifies SHFA in writing once a purchaser has been identified

• the tenant provides written authority if they wish SHFA to speak directly to the purchaser

• the property manager liaises with the proposed purchaser to ensure SHFA’s required financial checks (e.g. Dun & Bradstreet) are in place, provides a recommendation to SHFA and, if approved, oversees execution of the assignment.

SUb-lEASiNG Tenants require SHFA’s consent to sub-lease any part of their leased premises. In order for SHFA to make an informed decision about the proposed sub-lease, tenants must provide information about the proposed entity and the proposed usage of the space.

The duration of the sub-lease cannot be longer than the remaining term of the tenant’s lease. SHFA may seek to be a party to the sub-lease to ensure that the terms are consistent with the tenant’s lease (e.g. the rent cannot be proportionally higher for the sub-lease).

RENTAl CONCESSiONS ANd AbATEMENTSShould a tenant seek a rental concession or abatement from SHFA due to extraordinary circumstances, they must submit their application in writing to the property manager and commence the following process:

• the tenant meets with the property manager to discuss the reasons for the request

• the tenant provides relevant financial information

• the property manager submits the tenant’s request and financials to SHFA

• SHFA reviews the application in line with its Lease Concessions and Compensation Works Policy

• if SHFA approves the application, the tenant signs an agreement not to seek a further concession or abatement during the term of the lease.

Where a repayment plan is approved, it will be subject to interest at the rate prescribed under the lease, or where no rate is prescribed, the rate will be the current cost of capital applied by SHFA. Interest will apply to repayment plans covering both rent arrears and turnover rent arrears.


NON-COMPliANCE Where a tenant fails to comply with an essential term or condition of the lease, the property manager meets with the tenant to discuss how the tenant will rectify the situation. Examples of non-compliance include payment in arrears, damage to property, trading outside permitted use, non-compliance with outdoor seating licence and unauthorised works.

If the tenant fails to respond after this meeting, SHFA reserves the right to take the necessary action regarding non-compliance, which may ultimately result in termination of the lease.

SURRENdER/TERMiNATiON Of A lEASE Where a lease is surrendered by the tenant or terminated by SHFA:

• the property manager arranges a time to meet with the tenant and SHFA’s fitout coordinator to inspect the premises

• the property manager notifies the tenant of any works or other activities required under the lease before termination or surrender will be recommended (e.g. make good, return of guarantee/bonds)

• once the required works or activities are completed, the property manager submits a report to SHFA seeking approval for surrender or termination

• SHFA’s solicitors prepare the relevant documentation

• SHFA and the tenant execute the documents

• where the surrender is initiated by the tenant, the tenant meets the costs.


perIodIC reVIeWs

4PROPERTY iNSPECTiONS SHFA’s property manager undertakes quarterly inspections of properties under retail lease, and six-monthly inspections of properties under commercial lease.

Depending on the results of the most recent inspection, property inspections may occur more frequently.

Inspections check:

• the number and position of tables and chairs in outdoor dining areas

• the cleanliness and general appearance of the premises (tenants must verify compliance with their maintenance obligations under the lease, e.g. servicing air conditioning or pumping out grease arresters)

• that signage is consistent with SHFA policy

• that no unauthorised works have been undertaken.

RENTAl REviEWS A tenant’s lease with SHFA may include one of the following mechanisms for the periodic review of rent payable:

i. annual rental review based on a formula using a fixed percentage or the consumer price index (percentage/CPI review)

ii. rental review based on the market value of the relevant lease (market review)

iii. annual review of the rate per chair set by the CoS (outdoor licence review).

In the case of a market review, SHFA engages an independent valuer to determine the current market value. The property manager then notifies the tenant of SHFA’s proposed adjusted rent. If a dispute arises, the tenant may exercise the rights provided for in the lease.


essentIaL serVICe reQuIrements

5fiRE SAfETY SERviCE Fire safety certificates must be completed on an annual basis for all SHFA properties. The tenant is responsible for the certificate for their rental premises, while SHFA is responsible for certificates for the common areas in multi-tenant buildings.

Where tenants wish to use SHFA’s external fire safety service provider to inspect their rental premises, they need to deal directly with the external provider to meet the costs.

hAzARdOUS MATERiAlS (hAzMAT)Hazmat inspections seek to identify any hazardous materials in leased premises and provide advice to tenants on how to minimise risks from such materials.

SHFA regularly undertakes Hazmat inspections of its properties. A report is provided to the tenant once the inspection has been completed and this becomes a reference document for tenants who are considering renovating or refitting the premises.

If a Hazmat inspection indicates a high risk from any source, SHFA will undertake remediation works as soon as possible and, where the tenant is responsible, recover the costs.

Tenants also need to be mindful of workplace health and safety legislation, to ensure that any hazardous materials are not brought onto the leased premises and that staff are adequately protected.


end of Lease term

6lEASE RENEWAl SHFA reviews lease renewals in The Rocks precinct to ensure the NSW Government is getting the best possible return from public assets. As per usual business practice, there is no automatic right to renewal of a lease.

SHFA is required under the Retail Leases Act to notify a retail tenant of its intention regarding lease renewal no less than six months, and no more than 12 months, prior to the end of the lease term.

At the end of the lease term SHFA may:

• put the property to market, in which case the existing tenant may make an offer

• withdraw the property from the market (to undertake major building works)

• renew the lease to the existing tenant on agreed terms.

If the property has not been on the leasing market for a significant period of time (e.g. 10-15 years), SHFA will generally:

• put the property to market to test it for value for money

• undertake building works to restore the property and meet the requirements of modern occupiers (where the existing tenant is renewing the lease, SHFA will undertake these works with minimum possible disruption to the tenant’s business).

Tenants renewing an existing lease proceed through the same steps as those taking out a new lease:

Applying for lease renewal: the tenant puts forward a leasing proposal, to SHFA’s property management service provider (DTZ), who makes a recommendation to SHFA’s Executive Leasing Committee.

Planning for a refit: the tenant meets with SHFA’s in-house fitout coordinator to discuss any refit plans, including any development or heritage requirements.

Negotiating the lease: The parties negotiate and agree on the terms of the new lease which is then drafted.

Executing the lease: insurances and bank guarantee are submitted and the lease is executed.

vACATiNG ThE PREMiSESIf either SHFA or the tenant does not intend to renew a lease, they should notify the other party no less than six months before the end of the lease term. In this case:

• the property manager arranges a time to meet with the tenant and SHFA’s fitout coordinator to inspect the premises

• the property manager notifies the tenant of any works or other activities required under the lease before the tenant vacates (e.g. make good)

• once the required works or activities are completed, the property manager recommends that SHFA return the tenant’s bank guarantee

• if works are still outstanding, SHFA will offset the costs against the bank guarantee before returning any remaining balance to the tenant.

hOldOvER Where a lease expires and the tenant does not wish to commit to a new lease term, there may be an opportunity for the tenant to remain on holdover. With SHFA’s approval, holdover allows the tenant to remain in the premises on a month-to-month rental basis.

The rent for a holdover tenant generally increases by 10 per cent of the rental rate at the time the lease expired, while all other lease terms remain the same. This is intended to be a short-term measure, in place until a new lease is negotiated or the tenant vacates the premises.

Where a holdover occurs because SHFA decides not to commit to a new lease term – for example, if SHFA is planning major structural works on the property – there is no increase in rent for the tenant during the holdover period.


7CarInG for tHe roCKsKEEPiNG ThE PREciNcT clEAN, SAfE ANd SEcuRE

Property NSW is responsible for cleaning, maintaining and enhancing the public domain in The Rocks to a standard befitting an international tourism precinct.

Property NSW ensures safety and security in the precinct through a CCTV (electronic) surveillance service and a team of rangers who work closely with NSW Police, reflecting the high level of State and national significance of The Rocks.

Property NSW cleans up the rubbish, tends to the plants and grass, maintains the benches and cobblestones, and helps preserve The Rocks’ unique architectural heritage.

Services Property NSW oversees to ensure effective maintenance and presentation in the precinct includes:

• cleaning

• security

• horticulture

• waste

• CCTV

• graffiti removal

• road and paving

• signage

• monuments

• street furniture

• electrical

• plumbing

• roofing

• structural

• fire services

• air conditioning

• lifts and escalators

• locksmithing

• pest control.

Our website www.property.nsw.gov.au

The corporate website contains a range of information about how it works as custodian of The Rocks precinct. Topics covered include:

• planning and Landowner’s Consent

• properties for lease

• tenders and expressions of interest

• heritage conservation

• sustainability

• venue hire

• annual reports and other corporate publications

• policies and guides

• permits and application forms

• research and statistics

• media releases

• events news.


aCtIVatInG tHe roCKsEvENTS ANd AcTiviTiES iN ThE Public dOmAiN

MAJOR ANNUAl EvENTSSHFA produces three major annual events in The Rocks–Australia Day, Aroma Festival and Village Bizarre–and is also a key enabling partner for whole-of-government activities for Vivid Sydney and New Year’s Eve. Each of these major annual events is supported by a marketing strategy, including a public relations campaign and targeted advertising to heighten pre-event awareness and drive attendance.

Australia day (26 January)The Rocks is a drawcard for both Sydneysiders and international visitors on Australia Day (more than 100,000 people visit on this day each year). SHFA enhances their experience by hosting activities that encourage visitors to linger in the precinct and explore the laneways. Entertainment on offer includes free live music, outdoor markets and games.

vivid Sydney (may–June)SHFA is a founding strategic partner of Vivid Sydney, a winter celebration of creativity, light, music and ideas, which has become one of Sydney’s most popular festivals. SHFA co-funds activations and works closely with the Vivid team to ensure that Vivid lights up The Rocks.

Aroma festival (July)Aroma is a mouth-watering world of coffee. Roasters grind, baristas pour, milk froths, machines whirr, music drifts, and thousands of cups are filled, sampled and sipped. Workshops throughout the month of July culminate in the peak Aroma celebration at the close of the festival.

village bizarre (November–december)Expect the unexpected at The Rocks Village Bizarre on Friday nights in November and December. Laneways and shopfronts are transformed into a world of mystery, music and markets. Visitors and locals encounter colourful characters around each corner, sample a variety of gourmet foods, and meander through night markets of handmade treasures.

New Year’s Eve (december)The Rocks is typically filled to capacity on New Year’s Eve and SHFA creates a festive atmosphere throughout the precinct. Managing public safety and amenity are the key priorities.

SHFA drives visitation, and encourages visitors to stay longer, by delivering an annual calendar of intimate and large-scale events in The Rocks. Tenants are invited to participate. W

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Alongside major annual events, SHFA produces one-off activities that help make The Rocks a vibrant place to visit.

• Interpretative events: Creative, interpretive events that reveal the rich heritage of The Rocks. Previous events include The Rocks Windmill, Vintage Dinner, and The Rocks Boatshed.

• The Rocks Pop-up Program: Ongoing activation of vacant spaces and public areas. Visit therockspopup.tumblr.com for up-to-date details of what’s on and where.

• Venue Hire opportunities: Public domain spaces including First Fleet Park, Dawes Point, The Rocks Square and Hickson Road Reserve are activated through venue hire. SHFA takes into account suitability for tenants and ‘fit’ with The Rocks sense

of place when curating venue hire.

SPECiAl EvENTSThE ROCKS MARKETS The two markets held each week reflect SHFA research showing that visitors to The Rocks are looking for bespoke, handmade and individual products, and experiences that they can’t find elsewhere.

The Rocks Weekend marketWhen: 10am – 5pm, Saturdays and Sundays

Where: Jack Mundey Place, Playfair Street, northern end of George Street

200 eclectic stalls take their place under the famous canopy sails of The Rocks Market every Saturday and Sunday. The stalls feature an ever-changing range of locally made products, including fashion and accessories by emerging designers, homewares and linen, beauty products, jewellery, visual art and crafts.

About 20,000 people visit The Rocks Market each weekend.

The Rocks friday foodie marketWhen: 9am – 3pm, Fridays

Where: Jack Mundey Place, Playfair Street

Freshly prepared food makes the Friday market an irresistible open-air lunch stop. Locals and visitors eat, wander, sample and shop from a range of freshly prepared foods, condiments and homewares.

About 6,000 people come to The Rocks Foodies Market each week.

contact The Rocks market OfficePenny daw

Level 1, 12–26 Playfair Street, The Rocks

Telephone: 02 9240 8717

Email: [email protected]

Website: www.therocks.com


Tenants in The Rocks enjoy the benefits of SHFA’s annual marketing program, designed to drive visitation and support retail success in the precinct.

SHFA markets The Rocks as a destination across a range of media platforms, including social media and a dedicated website. It supports these promotions with a distinct brand for The Rocks.

ThE ROCKS bRANdSHFA has developed a brand implementation plan to position The Rocks as an alluring, world-class destination for Sydneysiders, domestic travellers and overseas visitors alike. Captured by the phrase ‘Made by Many Hands’, The Rocks brand embodies the idea of craft handed down over the years, with each generation finding and nurturing its own interpretation.

SHFA runs several brand campaigns each year to ensure that awareness of The Rocks remains high. These evolving campaigns create and reinvigorate Sydneysiders’ interest, and keep The Rocks top of mind for those considering a place to shop, dine or spend their leisure time.

diGiTAl ChANNElSSHFA ensures a regular promotional presence for The Rocks on the following social media and online channels:

• Facebook/therocks

• Twitter@therocks

• Instagram@therocks

• YouTube/SHFATheRocks

A mobile app for the precinct, Walking The Rocks, encourages visitors to linger and immerse themselves in the history of the precinct.

ThE ROCKS WEbSiTESHFA manages the core consumer-facing website for The Rocks therocks.com, which also incorporates The Rocks Markets and The Rocks Discovery Museum. The website promotes businesses and events in The Rocks, and includes:

• what’s on calendar

• restaurant, cafe and bar listings

• accommodation listings

• museum and gallery listings

• shopping

• services

• maps.

MAPS ANd GUidESSHFA reaches a large international and domestic audience each year through a range of maps and guides.

Sydney Official Guide: With over 750,000 copies distributed annually, the Official Guide is the market leader in tourism information and advertising in Sydney. It promotes Sydney and its attractions, including The Rocks, to intrastate, interstate and overseas visitors.

Sydney map: This free foldout map of the Sydney CBD highlights places and attractions, alongside suggested itineraries. 300,000 maps are distributed annually at locations including the international airport, Sydney visitor kiosks, four and five star hotels, and through Business Events Sydney.

The Rocks map: With content on attractions, events, key locations and services in the precinct, this map is a key tool for tourists visiting The Rocks. It is produced annually by SHFA, with a print run of 150,000, and distributed via Sydney Visitor Centres, Sydney Airport, city hotels and to conference delegates.

promotInG tHe roCKsANNuAl mARKETiNG PROGRAm

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made By many HandsCurIous IntImate saVourInG


SHFA wants to add value to your business through cooperative marketing that promotes both The Rocks and the businesses located here. To get the best out of this program, tenants are encouraged to speak to SHFA’s marketing team on a regular basis. Contact details are provided below.

fREE SERviCES monthly marketing updateEach month, SHFA’s marketing team contacts tenants to let them know what’s on in the precinct and how to get involved. Tenants are encouraged to provide SHFA with information about their own upcoming events or special offers for the month.

Tenant information collected through this monthly update is used to create ‘What’s On’ precinct posters, displayed in key locations around The Rocks. This is a great way to promote current offers to a large number of visitors already within the precinct.

SHFA also promotes selected listings from the monthly marketing update through the following channels:

• therocks.com calendar of events

• The Rocks e-News

• The Rocks Facebook, Instagram and Twitter channels.

The Rocks websiteAll businesses within The Rocks receive a free listing on therocks.com, with a short description, image and contact details, and a link to the business website.

create your own webpageTenants can also create their own webpage ontherocks.com a free opportunity to reach 48,000 unique website visitors per month.

PAid PROMOTiONSElectronic direct marketingTenants can promote special offers through an electronic direct marketing (EDM) bulletin, distributed monthly to subscribers of The Rocks e-News (mainly Sydneysiders aged 18–39). The special offers advertised in this exclusive tenant service must provide some value add for members over and above the usual business offering.

Website banners Tenants can rent out banner ads running across different pages on therocks.com. Ads link to the tenant’s nominated URL and can be updated as required during the booking period.

Contact:For more information on free and paid promotional opportunities with SHFA contact:

Campaign Manager, The Rocks

Telephone: 02 9240 8540

promotInG your BusInesscOOPERATivE mARKETiNG OPPORTuNiTiES fOR TENANTS

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Abatement An official reduction, allowance or rebate. Abatement pro rata is a proportionate reduction of the amount of each of a number of debts or claims, as where a fund or estate is insufficient for repayment of all in full.

Assignment The sale of an existing retail business and transfer of the lease to the new business owner.

Assignor The seller of an existing business.

conservation management Plan (cmP)

A plan providing guidelines for the conservation, re-use, interpretation and management of heritage items to ensure that heritage values are maintained and, where appropriate, enhanced.

demolition clause A clause in a lease that gives the owner the right to serve notice and terminate a lease for the purpose of demolition or renovation.

development Approval (dA)

Approval from the relevant planning authority to construct, add, amend or change the structure of a property.

disclosure Statement

A schedule of information, as required under retail lease legislation, which must be provided by a lessor prior to the new lessee’s lease.

Executive leasing committee

SHFA’s Executive Leasing Committee (ELC) is chaired by the CEO and includes executives from Place Management, Place Renewal, Place Services and Strategic Engagment and Visitor Experience. The function of the ELC is to assess leasing proposal recommendations in accordance with SHFA’s strategic direction and obligations. The ELC is convened fortnightly.

Extension of lease An agreement extending or renewing the terms of a lease for a period beyond the expiration date.

fitout The installation of fixtures and fittings to the leased premises to enable a business to be conducted.

fitout coordinator A representative of the lessor who is involved in all aspects of a tenant’s fitout, from concept through approvals, occupation and handover inspections. The fitout coordinator ensures the tenant receives and understands the relevant lessor documentation pertaining to the fitout works (e.g. fitout guide, architectural drawing).

fitout costs The cost of fitting out premises in accordance with the fitout contract, including the cost of any suppliers, consultants and contractors engaged pursuant to the clause.

fitout Guide A lessor document detailing the process and/or standard of construction for fitouts to be carried out by the lessee.

Gross Sales The sum total in dollars for all sales that the retailer makes during a specific period, usually a financial year. Normally used for the purpose of percentage rent calculations.

hold Over Where a lease term expires and the lessee remains in occupation (usually on a month-to-month basis) on the terms and conditions of the original lease.

landowner’s consent (lc)

The submission by the tenant of all required documentation on tenant works for the landowner’s review, comment and, as a final step, written approval.

letter of Offer A signed invitation from SHFA to a prospective tenant to make an offer to lease a property.

make Good The obligation of a lessee at the end of their occupation, to ensure that premises are returned to the same condition as at the commencement of the lease (e.g. painting and restoring partitions).

11GLossary


Notice of lessor’s intentions

Under the Retail Leases Act (1994), the lessor must notify the lessee not less than six months and not more than 12 months before the expiry of a lease of either an offer of a renewal/extension of the lease, or that the lessor does not propose to offer a renewal/extension.

Occupancy cost The total costs incurred by a tenant to provide space for operations. It includes net rent, operating costs (outgoings), capital costs, taxes, insurance and depreciation allowances.

Option An option in a lease refers to a further term of tenancy.

Permitted use The allowable use within the premises specified in the lease contract.

Public liability insurance

Catch-all insurance against a person’s liabilities in tort, arising out of such causes as the person’s activities or occupation, ownership or use of premises. Such insurance does not cover areas of liability usually covered by other insurance (e.g. worker’s compensation, professional indemnity, motor vehicle insurance).

Reference Schedule A section of the lease document, usually at the beginning, which outlines the variables in the lease.

Rent A payment made periodically by a lessee to a lessor for the use of premises.

Turnover / Percentage / Participation Rent

Any form of lease rental arrangement in which the lessor receives a form of rental that is based upon the sales of the lessee. Percentage rent is an example of a turnover rent.

Rent-Free Period A period of occupancy where no rent is demanded, normally used as an incentive to a new tenant at the commencement of a lease, and varied according to market conditions.

Rent Review A periodic review of rental under a lease using a predetermined method; for example, increase in line with Consumer Price Index (CPI), a fixed percentage increase, or increase in accordance with a market valuation.

Retail Leases Act 1994 (Retail leases Act)

NSW legislation setting out legal arrangements between landlords and tenants for shops selling and supplying goods and services, where the shop is less than 1,000 square metres and is used for a retail business.

Section 16 certificate (s16)

Where a lease (including options) is for less than a five-year term, a certificate under Section 16 of the Retail Leases Act (1994) is signed by the lessee’s lawyer or licensed conveyancer.

Sub-Lessor A tenant who grants a sub-lease for the property of which they are the tenant.

Works Any physical activity authorised to be carried out involving the construction, alteration, extension, restoration, repair, demolition or dismantling of buildings or structures that form part of land, whether or not works are permanent, and including the installation of any fittings forming part of land, including heating, lighting, air-conditioning, ventilation, power supply, drainage, sanitation, water supply, fire protection, security and communications systems.


tHe roCKs map

24 Information Guide 2015/16 (As at 23/6/16) Disclaimer: This document may be subject to change without notice.

June 2016

head OfficeLevel 6, 66 Harrington Street, The RocksPO Box N408, Grosvenor Place NSW 1220 Email: [email protected]: 02 9240 8500www.shfa.nsw.gov.au

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