Change in Control in Leases - Managing the Risk

Preventing the Landlord from getting a "seat at the table" when selling or recapitalizing.

Common Lease Provisions 

  • Prohibition of Assignment

  • Assignment with Lessor’s consent (reasonable or otherwise)

  • Assignment permitted without Landlord consent, but original Lessee remains liable

  • Recapture

Change in Control Risks

  • Increased Security Provisions

  • Rent Renegotiation

  • Other Lease Term Renegotiation

  • Recapture

The Challenge
  • Landlords goal - to renegotiate lease for consent to transfer

  • Our goal -  to mitigate these risks through preparation and skill to read each situation in an effort to create leverage to obtain Landlord's consent without cost

  • PPA has a wealth of experience in Change in Control analyses and negotiations