We are mostly residential investors looking into acquiring some commercial property. We are contemplating buying an office in North Shore, Auckland. Brief investigation of the company ( property developers) who are tenants shows that they have liquidated in 2009 and 2010. The current lease document has one of the directors as a guarantor. There is 1.5 years to run on the lease plus 1 yr right of renewal. Cap rate 8.5% as owner sick and v keen to sell.
Do we bail out? We have a DD clause in contract draft that allows us to change our mind without explanation.
We welcome advice from any seasoned commercial investors. How safe is a guarantor?
Thanks
Do we bail out? We have a DD clause in contract draft that allows us to change our mind without explanation.
We welcome advice from any seasoned commercial investors. How safe is a guarantor?
Thanks
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