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LEASES (COMMERCIAL AND RETAIL) ACT 2001 - SECT 108 Rules of conduct at end of lease term for shopping centre leases

LEASES (COMMERCIAL AND RETAIL) ACT 2001 - SECT 108

Rules of conduct at end of lease term for shopping centre leases

    (1)     This section applies to a lease for premises in the retail area of a shopping centre if the lessor proposes to re-lease the premises and the tenant wants to renew or extend the lease.

    (2)     The lessor must allow the tenant to renew or extend the lease in preference to allowing other possible tenants to lease the premises.

    (3)     The lessor must assume that the tenant wants to renew or extend the lease unless the tenant has told the lessor, in writing within 12 months before the end of the lease, that the tenant does not want to renew or extend the lease.

    (4)     The lessor may offer to lease the premises to someone other than the tenant only if it would be substantially more advantageous to the lessor to lease the premises to the other person rather than renew or extend the term of the lease.

    (5)     However, the lessor is not obliged to prefer the tenant under this section if—

        (a)     the lessor reasonably wants to change the tenancy mix within the shopping centre; or

        (b)     the tenant has breached the lease substantially or persistently; or

        (c)     the lessor—

              (i)     does not propose to re-lease the premises within a period of at least 6 months after the end of the term of the lease; and

              (ii)     needs vacant possession of the premises during that period for the lessor's own purposes (but not to carry on a business of the same kind as the business carried on by the tenant at the premises).

    (6)     Also, this section does not apply in relation to the lease if—

        (a)     section 111 applies in relation to the lease; or

        (b)     if the lease is a sublease—the sublease is as long as the term of the head lease allows; or

        (c)     the lease arises when the tenant holds over after the end of an earlier lease with the consent of the lessor and the holding over is for 6 months or less; or

        (d)     the lease is excluded from this section by regulation.

Note     This Act does not apply to leases with a term of less than 6 months unless they are continuous occupation leases (see s 12 (2) (c)).