Option-1: Lease Agreement 5 Years Rent 500,000 Per Month Increment in Rent Is @10% Amount As Gift 2 Million (2,000,000)

You might also like

Download as pptx, pdf, or txt
Download as pptx, pdf, or txt
You are on page 1of 8

Option-1

 Lease Agreement 5 years


 Rent 500,000 per month
 Increment in rent is @10%
 Amount as Gift 2 Million (2,000,000)
Option-2

 Lease Agreement 5 years


 Rent 550,000 per month
 Increment in rent is @10%
Option-3

 Lease Agreement 6 years


 Rent 550,000 per month
 Increment in rent is @10%
 Amount as Gift 1 Million (1,000,000)
Current status of shop

Yearly 2023-2024

Yearly Business 85 Mliion

Current Rent per month 322,000

yearly rent 3,864,000

RSR 5%

Shop area 1400 sq/ft

Rent per sq/ft 230


Statistics of option-1
Year 2024-2025
Agreement period 5 years
Yearly Business 100 Million
Rent per month 500,000
yearly rent 6,000,000 (6 Million)
RSR 6%
Shop area 1400 sq/ft
Rent per sq/ft 357
Gifted Amount 2,000,000 (2 Mliion)
rent Inc. gifted amount 533,333
Rent per sq/ft Inc. gifted amount 381
RSR Inc. gifted amount 8%
Statistics of option-2
Year 2024-2025
Agreement period 5 years
Yearly Business 100 Million
Rent per month 550,000
yearly rent 6,600,000 (6.6 Million)
RSR 6.6%
Shop area 1400 sq/ft
Rent per sq/ft 393
Gifted Amount Nill
rent Inc. gifted amount Nill
Rent per sq/ft Inc. gifted amount Nill
RSR Inc. gifted amount Nill
Statistics of option-3

Year 2024-2025
Agrement period 6 years
Yearly Business 100 Million
Rent per month 550,000
yearly rent 6,600,000 (6.6 Million)
RSR 6.6%
Shop area 1400 sq/ft
Rent per sq/ft 393
Gifted Amount 1,000,000 (1 Mliion)
rent inc gifted amount 563,890
Rent per sq/ft inc gifted amount 400
RSR inc gifted amount 7.6%
Recommendation

 Option number #2 is good in terms of RSR.


 In this option company will not give any gifted amount to Landlord.
 The only drawback of this option is we only have 5 years time duration of agreement.
 If we go for option # 1 than rent should be minimized.
 Because of very limited shop area business growth will not be too much.

You might also like