Selling a retail business usually means transferring the lease with it. Elite Retail Leasing manages the assignment end to end — landlord consent, disclosure requirements, guarantees and timing — so the sale settles when it is supposed to.
In retail, the lease is frequently the most valuable asset in a business sale. A well-located site on good terms with a long remaining tenure is exactly what a buyer is paying for. Which is why assignments are also where business sales most often stall.
Landlord consent is required, and landlords are entitled to assess the incoming tenant. If the buyer’s financial capacity or retail experience is not presented well, consent slows down or comes with conditions neither party expected. Meanwhile the sale contract has a settlement date attached to it.
We run assignments for both outgoing and incoming tenants, and we deal with landlord leasing teams constantly. Knowing what they need to see, and in what form, is usually the difference between a four-week consent and a four-month one.
We review the assignment provisions, remaining term, options, guarantees and any outstanding obligations, so both parties know what is actually being transferred.
Landlords assess the incoming tenant on financial capacity, retail experience and business plan. We prepare and present that case properly rather than sending through whatever the buyer happens to have.
Retail tenancy legislation imposes disclosure obligations on assignment — in Victoria, under the Retail Leases Act 2003 (Vic). We coordinate what is required so nothing derails the timetable at the last minute.
An outgoing tenant is not always released from liability on assignment, and personal guarantees can survive the transfer. This is negotiable and is routinely missed. We raise it early.
We keep consent, disclosure and the sale contract aligned so that settlement is not held up by a document nobody chased.
An assignment is also one of the rare moments where a lease can be renegotiated. Where an incoming tenant has leverage, we use it.
A landlord can withhold consent on limited grounds, which vary by state legislation and by the lease itself. In practice, most refusals relate to the incoming tenant’s financial capacity or retail experience — which is why how the application is prepared and presented matters so much.
Typically four to eight weeks once a complete application is with the landlord, though it can be longer for larger centre owners. Incomplete applications are the single most common cause of delay.
Not automatically. Depending on the lease terms and jurisdiction, an outgoing tenant and any guarantors can remain liable after assignment. Securing a release is a negotiation point, and it should be raised before consent is granted rather than after. Your solicitor should advise on the legal position.
Tell us about your site, your lease or your growth plans. We will tell you where you stand — directly, and without obligation.
© Elite Retail Leasing — Retail Leasing Consultants, Melbourne, Victoria, Australia