Optus tower

Hi Everybody,
Optus has approached my IP strata with a proposal, they would use our building(s) to host one of their towers/base stations. They would pay my strata 20k per year, (increasing 3%pa). The terms would be 5 years with the right to excise an option 3 times for a total of 20 years. The agreement they drafted stated they would pay for the electricity etc.

However there didn't seem to be any rights for us to not allow them to exercise an option, and the proposal allowed them to say allow other carriers to use their infrastructure so perhaps all the carriers would be transmitting from this equipment once it's in place.

My exec committee are saying no, (it's a strata of 72 units so each owner would benefit more than $200 initially).

What are your thoughts?
I think it's a good amount to defray other strata costs, but someone else argues that it would scare away a lot of buyers (perceived radiation etc). Also giving them the right to have that equipment up there for 20 years is a long time....
My unit block is in a popular area for trains, local shops, so it's a hive of activity and my strata block would be considered the tallest in the area. (9 floors high).

It's in North Western Sydney which has been going gangbusters recently.
Let me know what you think!
 
For $200 per unit I would say no.

That said most people wouldnt know they are there. Top floor would be a "percoevied" concern

I know some of these towers are renting @200k (20k p.a), upfront payment for 10 years.

Ask them to provided upfront payment for 10 years at $150K?
 
We are fighting the same thing for a client at the moment.

If BC want to say no but Optus want to proceed you need to go in hard and early. Optus can give you a notice and you can end having it decided by the ombudsman
 
We should be able to decline the proposal as it's just a proposal at this stage. The 10 years paid upfront deal would be sweet for current owners.... Future owners wouldn't get any $ benefits though.
Anyway I just did the calcs and after 20 years each owner would have received a total of about $7500.
 
A company I used to work for received a similar proposal. Don't accept their first offer. Easier to negotiate rental than lease term because their asset valuations require minimum 15 or 20 years.
 
Hi Everybody,
Optus has approached my IP strata with a proposal, they would use our building(s) to host one of their towers/base stations. They would pay my strata 20k per year, (increasing 3%pa). The terms would be 5 years with the right to excise an option 3 times for a total of 20 years. The agreement they drafted stated they would pay for the electricity etc.

All pretty standard for an initial offer.

However there didn't seem to be any rights for us to not allow them to exercise an option, and the proposal allowed them to say allow other carriers to use their infrastructure so perhaps all the carriers would be transmitting from this equipment once it's in place.

Options are always to be exercised by the tenant, the lessor agrees to offer them the option term. Optus are in a JV with Vodafone, so subletting rights (without additional compensation) is standard in their agreement.

My exec committee are saying no, (it's a strata of 72 units so each owner would benefit more than $200 initially).

What are your thoughts?
I think it's a good amount to defray other strata costs, but someone else argues that it would scare away a lot of buyers (perceived radiation etc). Also giving them the right to have that equipment up there for 20 years is a long time....
My unit block is in a popular area for trains, local shops, so it's a hive of activity and my strata block would be considered the tallest in the area. (9 floors high).

Do some reading ---> Linky

And above all, seek appropriate advice.
 
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