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Question · Lease term and options

Saint-Aubrac leases three warehouses. During the year: (1) market rents in the region of the North warehouse rose by 20%, making its unincluded extension option very favourable; (2) Saint-Aubrac completed in the South warehouse significant leasehold improvements not anticipated at the commencement date, from which it will benefit significantly if it extends; (3) Saint-Aubrac formally exercised the extension option of the East warehouse, which was not included in the lease term. Write a memo stating, for each warehouse, whether the lease term must be reassessed, revised or left unchanged.

Your answer

Judgment question: compare your answer with the criteria and the model explanation.

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