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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."
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
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
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
Real Estate
Banking and Finance
Manufacturing
Retail
Healthcare
Hospitality
Logistics and Warehousing
Industrial
Education
Commercial Office
Data Centers
Legal
Finance
Real Estate
Operations
Facilities Management
Treasury
Tax
Risk Management
Corporate Development
Property Management
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
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