When a capital owner signs with CF Land, what they buy is not the building but the lease attached to it. Read that lease with the seven questions below; if any has no clear answer in the text, do not sign yet.
Seven questions
- Term and renewal: how many years, who can renew, on what conditions?
- Rent escalation: which index, what cycle, is there a cap — and does the sub-lease to the operator use the same mechanism?
- Termination: who can terminate early, with how much notice, what compensation; does it mirror the sub-lease?
- Major maintenance: who pays for the roof, refrigeration plant and yard equipment after year 10?
- Performance security: deposit, bank guarantee or parent guarantee?
- Assignment: if the capital owner sells the SPV to a fund, does the lease travel with the asset or need re-signing?
- Operating data: what reports does the capital owner see, how often, on which platform?
How CF Land answers
The master lease and the sub-lease are written symmetrically on term, price and termination (see Back-to-back). Major maintenance and reporting sit in the asset-management contract, which continues after the SPV changes hands. Operating data runs through MQ ICT's platform and the capital owner has its own login.
For capital owners
Ask for the draft sub-lease with the operator and put it next to the master lease. If the two do not match on term, price and termination, the risk sits with the party in the middle — and will end up with you.
Reference: CF Land — FAQ. Written by CF Land; planning figures and credentials come from published sources and must be confirmed for each specific project.