Waikato Business News | January 12, 2024

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8 WAIKATO BUSINESS NEWS JANUARY 2024 ADVERTORIAL Commercial Leases ? – Agreement to Lease or Deed of Lease University opens new business hub Commercial property lease transactions consist of formalising the relationship between Landlords and Tenants. Two key documents in this context are the Agreement to Lease and the Deed of Lease, with each serving a specific purpose. Agreement to Lease: The Agreement to Lease is typically the first document in the commercial leasing process, setting out the broad commercial terms of the lease – things like the length of the lease, commencement date, how much rental will be, the rent review provisions, along with any required works or conditions to be met. It is a legally binding document, albeit that it may be conditional for a period of time, providing an option to not proceed if the conditions are not met. This document is particularly useful when parties want to quickly establish the basic terms of the lease without delving into the extensive details typically found in a full lease agreement. There are also occasions where parties may instead agree to an alternative Heads of Terms type document, that highlight the general terms, but in many instances are nonbinding. Several Key Elements of an Agreement to Lease: Basic Terms: The Agreement to Lease covers fundamental aspects such as the names of the parties, the property details, the term of the lease, and rental amounts. Conditions: It may include conditions that need to be met or satisfied before the lease becomes binding. These conditions might involve obtaining necessary consents, permits, or completing certain works on the property. For example, a lease may not start until the Landlord has finished building the premises. In this case the Agreement to Lease will only state an estimated commencement date. The Deed of Lease will then record when the building was finished, and when the lease started. It is always good to know exactly when your lease commenced, so you know exactly when it will end. Negotiation Platform: The Agreement to Lease serves as a platform for negotiations through an offer and counter offering, where necessary. Once the parties agree on the essential terms and it becomes unconditional, they can proceed to finalize the more comprehensive Deed of Lease in due course. Deed of Lease: Once the parties have a fully executed Agreement to Lease, and all conditions have been satisfied, the next step is for the Tenant and the Landlord to enter into a formal Deed of Lease, which is usually prepared by the Landlord’s lawyer. The most common type being the ADLS (Auckland District Law Society) form, though some Tenants and Landlords may have their own bespoke versions or standard modifications. The latest version being the ADLS 6th Edition 2012 (5) form, with each party normally paying their own legal costs associated with the negotiation and preparation of both the Agreement to Lease and Deed of Lease documents. Other Key Components of a Deed of Lease: Rights, Responsibilities and Obligations: Enumerates the rights and responsibilities of both the Landlord and the Tenant, including maintenance obligations, use of the property, reinstatement at the end of the lease and compliance with laws. Termination and Renewal: Provides details on circumstances under which the lease can be terminated, as well as any provisions for renewal or extension. Dispute Resolution: Includes provisions for resolving disputes that may arise during the lease term. Alterations and Improvements: Governs any alterations or improvements the Tenant may wish to make to the property. In summary, the Agreement to Lease and the Deed of Lease play distinct roles in the commercial leasing process. The former initiates negotiations and establishes initial terms, while the latter formalizes the agreement, providing a comprehensive legal framework for the Landlord- Tenant relationship. Both documents are integral to ensuring a clear and mutually beneficial commercial property transaction and relationship. As outlined above, when you sign an Agreement to Lease you are bound by the terms of a Deed of Lease as well, so it makes sense to know exactly what a Deed of Lease contains. Having a final Deed of Lease in place is important if you ever wished to assign the lease to another party. Clause 6.1 of a standard ADLS Agreement to Lease states that the Agreement to Lease cannot be assigned. Under REAA 2008 we (real estate agents) are required to recommend to all parties, before entering into a lease arrangement, that they should seek legal and other professional advice prior to signing any lease documentation. Engaging an experienced commercial lawyer for advice in these circumstances is very important, particularly for those who are new to leasing. Ready and waiting – inside the university’s new hub. A new business precinct and co-working space at the Hamilton campus is designed to strengthen ties between the business community and the University. Hiko hub will provide businesses with the flexibility of a co-working space and the benefits of the campus’ unique grounds and amenities. Businesses that join the hub will also have opportunities to connect with students through work experience opportunities, including work-integrated learning. Waikato University chief operating officer Jim Mercer, said the project was a positive step for the university and the Waikato business community. “This concept has been brewing for several years, driven by our commitment to work more closely with local industry and Straight teeth – and good luck CONTINUED FROM PAGE 5 When she became practice manager for an ear, nose and throat specialist, she was sure it was the best job of her life. “I learned how to run people and be a boss, and having to wear smocks meant I didn’t need a full working wardrobe.” She worked through lunch so she could pick the kids up after school and waitressed three nights a week. The next seismic event occurred when she met established businessman Bill Foreman and his then wife, Mary Pat. Bill was running Trigon, based out of Hamilton’s Foreman Rd. A nagging hearing problem brought him into the practice and the family soon bonded with Diane over their shared experience as adoptive parents. Bill regaled Diane telling her story to a packed U3A meeting. Photo: Bruce Hancock make smarter use of our space. Hiko hub addresses a genuine demand from small businesses in the region seeking a vibrant and contemporary workplace while being part of a larger ecosystem.” Tech company Resolution8 has signed on with the hub and will be moving into the space early this year. Director Peter Gilbert said the close ties to an organisation known for its strong tech credentials was a drawcard. “From establishing New Zealand’s first internet connection in 1989 to leading the way now with their Artificial Intelligence Institute, the University has long led the way in tech. Resolution8 prides itself on innovation, so it feels like a natural alignment,” he said. The hub gets its name from the Māori word for lightning or “to ignite”. her with business chat and gave her copies of National Business Review to read. Time passed and Diane, seeking more in life, left the practice and became a real estate agent. Later, when she dropped into her former boss to get property papers signed, she stumbled across Bill. Mary Pat had died a week earlier and conversation was awkward, but a month later, Bill invited Diane for tea. She was sure he would offer her a job as a secretary, or perhaps as nanny for his children. Several similar meetings followed until Diane asked when he was going to offer her the job…instead, he asked her to marry him. Mary Pat, concerned at leaving young children for Bill to raise alone, had prophetically reminded him of the sharp young woman at the ENT practice. Bill conducted his own appraisal, something Diane later learned was a key component to his business success, and the two married in 1988. She was instantly propelled into a different world. “It was the best decision I ever made … he changed my life,” Diane said. “First, I learned to be a corporate wife. We travelled the world and I’d sit in boardrooms and meet with his directors. Then the third big thing happened. Bill had a stroke and asked me to go onto the board at Trigon as a director… he wanted me to take it over.” Despite her terror, she deftly navigated the misogynism and mastered the challenges. When they sold Trigon in 1995, they pursued numerous other business interests that took them across the globe until Bill’s death in 2017 marked the end of an era. “I learned so much from him,” she said. “He taught me that people are the biggest asset to any business… through him I learned how to select and hold on to the best people.” Diane continued to blaze her own path as a highly respected businesswoman. She reckons she was lucky to learn from the best, and in 2015 published her best-selling book on entrepreneurship, In the Arena.
JANUARY 2024 WAIKATO BUSINESS NEWS 9 BUSINESS SHOWCASE Company-X wins contract to build Flight Deck Officer training simulation for Royal New Zealand Navy Company-X, a leading provider of training simulation solutions, has been awarded a contract to build a Flight Deck Officer (FDO) training simulation for the Royal New Zealand Navy (RNZN). will use virtual reality headsets and artificial intelligence “Company-X (AI) technology in the simulation that will train flight deck officers already versed in theory on how to land helicopters on a frigate’s flight deck safely and efficiently. The simulation will feature a variety of real-world training scenarios in changing sea states. The simulation is expected to be delivered in mid-2024 and will be used to train officers for the RNZN’s Anzac-class frigates HMNZS Te Kaha and HMNZS Te Mana. Company-X expertise includes simulation, mixed reality, system emulation, and gamified training. “We are honoured to have been awarded the contract to build this new training simulation,” said Company-X Head of Simulation Lance Bauerfeind. “This is a testament to our expertise in developing and delivering cuttingedge training solutions. We know that A Flight Deck Officer (FDO) at work. Photo: NZDF this simulation will assist the Royal New Zealand Navy in providing the best possible training to their FDOs,” added Company-X co-founder David Hallett. Company-X has previously built training simulations for DeLaval, First Gas, Independent Verification Services and WorkSafe. Company-X’s reputation is built on creating systems that run the world better. Company-X is a leader in the defence, infrastructure, software as a service (SaaS) and technology sectors; innovating systems through software to tackle key challenges for businesses and government agencies. Company-X builds highly skilled, tightly knit, self-managing, and colocated teams. Its insourced teams stay with projects throughout the development lifecycle to efficiently address complex problems with speed and specialised expertise. Co-founded by directors David Hallett and Jeremy Hughes, Company-X is celebrating a decade of business in 2023. Lance Bauerfeind. Navigate the digital landscape with us
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Waikato Business News | January 12, 2024

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