Restaurant Lease and Business Sale

The newspaper Correio da Manhã Canada publishes the article "Restaurant Lease and Business Sale" of Carlos Nunes, CEO of Fire Horse in the 11/17/2020 edition.
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17 0f November 2020.

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“(…) And now he wants to sell the company to someone else (…) and he came to give me a letter of preference signed with a lawyer (…) but I don’t know if it’s true (…)”

AS – T

Dear lady,

The main reason why we acquire properties to rent, whether by buying and selling, be it by inheritance or otherwise, is, as you write in your letter, to obtain an income. Whenever this income is higher than what you would receive from a time deposit in the amount of the invested capital, as a rule, it is a good investment. In a sentence, what interests the landlord is to receive the rent.

In the case you put up for analysis, the question is different: the tenant wants to give up his position to another, paying the same rent. And it wants to do so by selling the entire share capital of the company that is the holder of the lease. The legislative change that occurred some time ago equates to the sale of the share capital of the company that is a tenant to the transfer and for that to happen, the Landlord is notified in advance to exercise the preference.

In practice, it is the Landlord who buys the company and not the third party, the interested party. Whether or not there is an interested party, if “this is a scheme”, to take the you to advance with more than one hundred thousand euros, only knowing the facts. However, what, with the help of your lawyer, you should think is different: is it worth paying for the tenant to leave or continue to receive the rent?

The company will have to continue paying the rent and it may not make sense to be paying for the tenant to leave, as he may run out of money and not find another tenant.

Carlos Nunes

CEO

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