Building Leasing
Features
With this form of leasing, BOT Lease leases land from a land owner through a commercial fixed term land lease contract, builds either a roadside store, warehouse, shopping center, or other type of building on that land, and leases the building to customers. Building specifications are decided between the customer and the construction company.
Scheme Diagram
The customer obtains the land from the land owner through a commercial fixed term land lease contract, and with the consent of the land owner, subleases to land to BOT Lease through a commercial fixed period land sublease contract (BOT Lease pays the land sublease fee rather than the customer).
(It is also possible for BOT Lease to obtain land directly from land owners depending on the conditions.)
A “commercial fixed term land lease” is a long term lease (10 to 50 years in duration) for ownership of buildings which are used exclusively for commercial purposes. At the end of the lease, all lease rights are normally terminated (possible to update the lease through a separate agreement). This type of lease is used by many businesses, including roadside stores.
Benefits
1. Financial Planning Support
Customers can plan long term profit and loss management since building and land fees are the same amount each month, meaning that there are no initial cost burdens such as construction fees or construction assistance fund. Stable returns are particularly associated with businesses that receive a steady income. Also, businesses have flexibility in financing since they are able to retain their borrowing facility from financial institutions since this form of leasing has the same effect as long term fixed financing.
2. Store Development Support
Since building interiors and exteriors are selected by customers, buildings can be constructed according to customer business models.
3. Paperwork Support
Although building repair and maintenance management is conducted by the customer actually using the building, administrative burdens are reduced compared to owning the building which would require payment of expenses such as insurance, property tax, and city planning tax.
Targeted Assets
Roadside stores, warehouses, shopping centers, etc.
Contact Information
- Real Estate Finance Division
- TEL.+81-(0)3-3537-8054
