QUESTION 1 Kwarkor, a tenant occupies a warehouse unit of 1,700m2 on a lease with four (4) years unexpired. The rent payable is 60/m, with no further rent reviews. A similar warehouse recently sold for 1.5 million at a yield rate of 8%. Kwarkor would like the landlord to extend the warehouse by a further 200m, at a cost of 100,000. The landlord is prepared to carry out the works on the basis that the Kwarkor takes a longer 15-year lease, with five-yearly rent reviews, on the surrender of the existing lease. The tenant wants the costs spread over the 15-year term, but the landlord wants the cost of the works spread over the five years to the first review. a. What effect does this have on the rent the tenant should pay? (32 marks) b. What are the implications at rent review and the benefits to the parties? (8 marks 2 QUESTION 1 Kwarkor, a tenant occupies a warehouse unit of 1,700m2 on a lease with four (4) years unexpired. The rent payable is 60/m, with no further rent reviews. A similar warehouse recently sold for 1.5 million at a yield rate of 8%. Kwarkor would like the landlord to extend the warehouse by a further 200m, at a cost of 100,000. The landlord is prepared to carry out the works on the basis that the Kwarkor takes a longer 15-year lease, with five-yearly rent reviews, on the surrender of the existing lease. The tenant wants the costs spread over the 15-year term, but the landlord wants the cost of the works spread over the five years to the first review. a. What effect does this have on the rent the tenant should pay? (32 marks) b. What are the implications at rent review and the benefits to the parties? (8 marks 2