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Sale Leaseback Agreement Template for Hong Kong

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Key Requirements PROMPT example:

Sale Leaseback Agreement

"I need a Sale Leaseback Agreement for a commercial warehouse property in Kowloon, Hong Kong, with a purchase price of HKD 50 million and a 10-year leaseback term starting March 2025, including an option for the tenant to repurchase after 5 years."

Document background
The Sale Leaseback Agreement is a sophisticated financing tool commonly used in Hong Kong's commercial real estate market. It enables property owners to unlock capital from their real estate assets while retaining operational control through a leaseback arrangement. This document type is particularly valuable for businesses seeking to improve their balance sheet position or requiring significant capital injection while continuing their operations uninterrupted. The agreement must comply with Hong Kong's legal framework, including the Conveyancing and Property Ordinance, Stamp Duty Ordinance, and Landlord and Tenant (Consolidation) Ordinance. It includes detailed provisions for both the property sale and the subsequent lease terms, ensuring proper registration with relevant authorities and addressing tax implications.
Suggested Sections

1. Parties: Identification of the Seller/Future Tenant and Buyer/Future Landlord

2. Background: Context of the transaction, including property details and purpose of the sale leaseback arrangement

3. Definitions and Interpretation: Defined terms and interpretation rules used throughout the agreement

4. Sale and Purchase: Terms of the property sale, including purchase price, deposit, and completion requirements

5. Conditions Precedent: Conditions that must be satisfied before completion of the sale

6. Completion: Process and requirements for completing the sale transaction

7. Leaseback Terms: Essential terms of the leaseback arrangement, including lease period, rent, and payment terms

8. Property Use and Maintenance: Permitted use of property and maintenance responsibilities

9. Insurance: Insurance requirements for both parties

10. Assignment and Subletting: Restrictions on transfer of rights under both sale and lease aspects

11. Default and Termination: Consequences of default and termination provisions

12. Representations and Warranties: Standard representations and warranties from both parties

13. Governing Law and Jurisdiction: Confirmation of Hong Kong law and jurisdiction

14. Notices: Process for serving notices under the agreement

15. Execution: Signature blocks and execution formalities

Optional Sections

1. Break Clause: Optional early termination provisions, included when parties want flexibility to end the lease early

2. Rent Review: Mechanism for periodic rent adjustments, included for longer lease terms

3. Environmental Matters: Specific provisions regarding environmental compliance, included for industrial properties

4. Planning and Zoning: Specific provisions regarding planning permissions, included when property development is contemplated

5. Service Charge: Provisions for shared building costs, included for properties in multi-tenant buildings

6. Alterations and Improvements: Rights and restrictions regarding property modifications, included when significant modifications are anticipated

7. Option to Purchase: Tenant's right to repurchase property, included when agreed as part of the transaction

8. Tax Matters: Specific tax arrangements between parties, included for complex tax structures

Suggested Schedules

1. Property Description: Detailed legal description of the property including title particulars

2. Purchase Price and Payment Terms: Detailed breakdown of purchase price, payment schedule, and methods

3. Lease Terms: Detailed terms of the leaseback arrangement including rent calculations

4. Condition Schedule: Current condition of the property and any agreed repairs or improvements

5. Permitted Use: Detailed description of permitted uses of the property

6. Service Level Requirements: Maintenance and service standards if applicable

7. Form of Transfer Deed: Template for the property transfer deed

8. Existing Encumbrances: List of existing mortgages, charges, or other encumbrances

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions













































Clauses









































Relevant Industries

Real Estate

Banking and Finance

Manufacturing

Retail

Healthcare

Hospitality

Logistics and Warehousing

Industrial

Education

Commercial Office

Data Centers

Relevant Teams

Legal

Finance

Real Estate

Operations

Facilities Management

Treasury

Tax

Risk Management

Corporate Development

Property Management

Relevant Roles

Chief Financial Officer

Real Estate Director

Property Manager

Legal Counsel

Corporate Treasurer

Facilities Manager

Finance Director

Commercial Director

Operations Director

Asset Manager

Investment Manager

Property Development Manager

Risk Manager

Company Secretary

Tax Director

Industries







Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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