Policy Real Estate Acquisition Term (Lease) Procedure
Real Estate Acquisition Term (Lease) Procedure
- Aboriginal and Torres Strait Islander in Marine Science
- Courses
- Future Students
- Current Students
- Research and Teaching
- Partners and Community
- About JCU
- Reputation and Experience
- Celebrating 50 Years
- Academy
- Anthropological Laboratory for Tropical Audiovisual Research (ALTAR)
- Anton Breinl Research Centre
- Agriculture Technology and Adoption Centre (AgTAC)
- Living on Campus
- How to apply
- Advanced Analytical Centre
- Alumni
- AMHHEC
- Aquaculture Solutions
- AusAsian Mental Health Research Group
- ARCSTA
- Area 61
- Association of Australian University Secretaries
- Australian Lions Stinger Research
- Australian Tropical Herbarium
- Australian Quantum & Classical Transport Physics Group
- Boating and Diving
- JCU-CSIRO Partnership
- Employability Edge
- Clinical Psychedelic Research Lab
- Centre for Tropical Biosecurity
- Career Ready Plan
- Careers at JCU
- Careers and Employability
- Chancellery
- Centre for Tropical Bioinformatics and Molecular Biology
- CITBA
- CMT
- CASE
- College of Business, Law and Governance
- College of Healthcare Sciences
- College of Medicine and Dentistry
- College of Science and Engineering
- CPHMVS
- Centre for Disaster Solutions
- CSTFA
- Cyber Security Hub
- Cyclone Testing Station
- The Centre for Disaster Studies
- Daintree Rainforest Observatory
- Defence
- Discover Nature at JCU
- Research Division
- Services and Resources Division
- Education Division
- Elite Athletes
- eResearch
- Environmental Research Complex [ERC]
- Estate
- Fletcherview
- Foundation for Australian Literary Studies
- Gender Equity Action and Research
- General Practice and Rural Medicine
- JCU Orientation
- Give to JCU
- Governance
- Art of Academic Writing
- Art of Academic Editing
- Graduate Research School
- Graduation
- Indigenous Education and Research Centre
- Indigenous Engagement
- Indigenous Legal Needs Project
- Inherent Requirements
- IsoTropics Geochemistry Lab
- IT Services
- International Students
- Research and Innovation Services
- JCU Eduquarium
- JCU Heroes Programs
- JCU Webinars
- JCU Events
- JCU Global Experience
- JCU Ideas Lab
- JCU Job Ready
- JCU Motorsports
- JCU Prizes
- JCU Sport
- JCU Turtle Health Research
- Language and Culture Research Centre
- CEE
- LearnJCU
- Library
- Mabo Decision: 30 years on
- MARF
- Marine Geophysics Laboratory
- New students
- Off-Campus Students
- Office of the Vice Chancellor and President
- Virtual Open Day
- Orpheus
- Open Day
- Outstanding Alumni
- Parents and Partners
- Pathways to university
- Pharmacy Full Scope
- Planning for your future
- Placements
-
Policy
- Academic Governance
- Academic Management
- Engagement
-
Corporate Governance
- Academic Freedom and Freedom of Speech Policy
- Affiliation of a Residential College Policy
- Bullying, Discrimination, Harassment, and Sexual Misconduct Policy
- Business Continuity Policy
- Child Safety Policy
- Code of Conduct – University Council
- Compliance Policy
- Conduct of Council Elections Policy
- Conflicts of Interests Policy – University Council and its Committees
- Controlled and Non-Controlled Entities Policy
- Critical Incident Policy
- Data Governance Policy
- Distinguished Professor Policy
- Domestic and Family Violence Policy
- Emeritus Professor Policy
- Foreign Interference Policy
- General Practice Training Governance Policy
- Incident Management Policy
- Information Privacy Policy
- Legal Services Claims and Litigation Assistance Policy
- Organisational Structure Policy
- Records Management Policy
- Right to Information Policy
- Risk Management Policy
- Social Media Policy
- Staff Code of Conduct
- University Archives - Access
- Visiting Speaker and Event Policy
- Policy Development and Review Policy
- Quality Enhancement Framework
- Reviews of Organisational Units and Thematic Areas - Policy and Procedures
-
Estate and Facility Management
- Advertising on Campus
- Alcohol Consumption on University Property
- Approval of Works to University Buildings and Site Infrastructure
- Authorised Use of University Facilities, Premises and/or Grounds for Non-core Purposes
- Environmental Policy
- High Voltage Access Policy
- Memorial Plaques
- Noise on University Sites
- Real Estate Dealings Policy
- Security Policy
- Space Allocation and Management Policy
- Student Timetable Policy
- Tree Protection
- Vehicle Fleet Policy
- Weapons Policy
- Adaptive Workplace Policy
-
Financial Management
- Appendices
-
Assets (FMPM 200 - FMPM 399)
- FMPM 200 Overview - Assets & Cash Management
- FMPM 210 Cash
- FMPM 220 Policy - Bank Accounts
- FMPM 230 - Petty Cash Advances
- FMPM 300 Investments
- FMPM 320 Plant and Equipment
- Financial FMPM 322 - Acquisitions of Plant and Equipment
- FMPM 260 Other Advances
- FMPM 330 Non-Capital Assets
- FMPM 280 Official Stores
- FMPM 290 Prepayments
- FMPM 323 - Disposal of Property, Plant and Equipment Procedure
- FMPM 324 Stocktake
- FMPM 350 Intangible Assets
- FMPM 270-2 Accounts Receivable - Student Debtors - Penalties
- FMPM 240 Travel Advances (Students)
- FMPM 330 Non-Capital Assets
- FMPM 270-1 Accounts Receivable
- FMPM 250 - Policy Salary Advances
- Equity (FMPM 500 - FMPM 599)
- Expenses (FMPM 700 - FMPM799)
- Financial Management and Control (FMPM 800 - FMPM 899)
- Further Applications (FMPM 900 - FMPM 999)
- Introduction (FMPM 100 - FMPM 199)
- Liabilities (FMPM 400 - FMPM 499)
- Revenue (FMPM 600 - FMPM 699)
-
Human Resources
- Awards for Excellence Policy
- Bullying, Discrimination, Harassment, and Sexual Misconduct Policy
- Community and Indigenous Language Allowance
- Competency Pay for Tradespersons Policy
- Conflict of Interest Policy
- Early Retirement Policy
- Equal Employment Opportunity
- Honorary Appointments Policy
- Human Resources Policy Glossary
- Market Loading Policy
- Overpayment of Wages Policy
- Performance, Development and Recognition Policy
- Recruitment, Selection and Appointment Policy
- Relocation Assistance Policy
- Remote Working Policy
- Salary Packaging Program Policy
- Special Studies Program Policy
- Supported Wage System (SWS) Policy
- Mandatory Training Policy
- Digital Infrastructure
-
International and Admissions
- Attendance Monitoring Policy - English Language and Foundation Programs
- Enrolment Requirements for International Student Visa-Holders Policy
- Management of Off-Campus Operations, Ventures and Partnerships
- Transfer of International Student Visa Holders to Other Educational Institutions
- US Federal Student Aid-SAP & Return to Title IV Policy
- Admissions Policy
-
Learning and Teaching
- Blended Learning Policy
- Charter of Responsibilities for Academic Quality and Governance
- Coursework Academic Integrity Policy
- English Language and Numeracy Policy
- Graduate Attributes
- Graduate Certificate of Education (Academic Practice) Internal Sponsorship Policy
- Learning Teaching and Assessment Policy
- Policy Glossary
- Review of a Student’s Suitability to Continue a Course Involving Placement
- Student Digital Experience Policy
- Student Evaluation of Subjects and Teaching Policy
- Student Retention Policy
- Research Education
- Research Management
-
Student Matters
- Academic Progression Policy
- Administration of Commonwealth Scholarships Policy
- Attendance Monitoring Policy - English Language and Foundation Programs
- Award Finalisation and Graduation Policy
- Bullying, Discrimination, Harassment, and Sexual Misconduct Policy
- Copyright Policy and Procedure
- Coursework Enrolment Policy
- Coursework Scholarships, Grants and Prizes Policy
- Library Use Policy
- Student Code of Conduct
- Student Complaints Policy
- Student Disability Policy
- Student Fee Payments and Refunds Policy
- Student Review and Appeals Policy (effective from 01/01/2023)
- Student Special Circumstances Policy
- Transfer of International Student Visa Holders to Other Educational Institutions
- Student Results Policy
- Support for Students Policy (Interim)
- Work Health and Safety
- Policy search
- PAHL
- Publications
- Professional Experience Placement
- Queensland Research Centre for Peripheral Vascular Disease
- Rapid Assessment Unit
- RDIM
- Researcher Development Portal
- Roderick Centre for Australian Literature and Creative Writing
- Safety and Wellbeing
- Scholarships
- Contextual Science for Tropical Coastal Ecosystems
- Staff
- State of the Tropics
- Strategic Procurement
- Student Equity and Wellbeing
- Student profiles
- SWIRLnet
- TARL
- TESS
- TREAD
- TropEco for Staff and Students
- TQ Maths Hub
- TUDLab
- Unicare Centre and Unicampus Kids
- UAV
- VAVS Home
- Work Health and Safety
- WHOCC for Vector-borne & NTDs
- Media
- Copyright and Terms of Use
- Australian Institute of Tropical Health & Medicine
- Pay review
Intent
This Procedure sets out the steps to lease or take temporary possession of Real Estate on behalf of James Cook University (JCU; the University).
Scope
The procedure applies to all staff, students, consultants and contractors representing JCU Australia in the acquisition of Real Estate via lease.
This procedure does not apply to JCU Brisbane or JCU Singapore.
This Procedure does not apply to the acquisition of Real Estate via purchase – refer to the Real Estate Acquisition Permanent Procedure.
Definitions
Except as otherwise specified in this procedure, the meaning of terms used in this procedure are as per the Real Estate Dealings Policy and the Policy Glossary.
Introduction
To fulfill its strategic objectives to serve regional and remote Queensland, the University requires a diverse Real Estate portfolio across the State. The University’s Real Estate portfolio ranges from residential houses and apartment to commercial buildings and land. From time to time the range and location of Real Estate within the portfolio will change, requiring an Authorised Person (AP) to acquire (including leasing) or dispose of Real Estate.
This procedure sets out the process and steps to take to ensure the University leases the correct Real Estate in response to the University’s strategic plans and objectives, on the correct terms, relevant to its needs and the greater market conditions, and in the correct geographical location. For example, when JCU leases property for student accommodation or commercial use, this procedure and policy apply in full. For the avoidance of doubt, the source of the finance which pertinent to the transaction and Tenure of Real Estate is irrelevant and the policy and procedure apply.
Procedure
Under this Procedure, a Lease or term agreement shall fit under one of the following four processes:
- Process 1 – Renewal Lease - Small;
- Process 2 – Renewal Lease – Large;
- Process 3 – New Lease – Small; and
- Process 4 – New Lease – Large.
To provide further direction and clarity, each of these processes are expanded further into a series of steps as detailed below.
The steps also identify what actions will occur, how it will be processed and who is responsible for the execution, including:
- Actions;
- Responsible officer;
- Timing; and
- Sequence.
Some of the actions may overlap rather than run consecutively. The timings shown are indicative and should only be used as a guide.
Process 1 – Renewal Lease – Small
Typically, this process will be used for residential property such as student accommodation but may also be used for other short-term lease arrangements. Ideally this need should have been identified in the annual planning process.
Use this process if:
- The Real Estate has been leased by JCU previously; and
- The Lease term is 3 years or less; and
- The proposed gross rent (including outgoings) will not exceed $50,000 + GST per annum.
Step | Action | Responsible Officer | Timing |
1.1 | Client identifies a need and submits a Real Estate Request Form to Manager, Leasing and Commercial Portfolio. The request should include supporting documentation e.g., budget, future funding source, demand analysis, long term plan. Demand analysis should include a record of historic use for the prior period. | Client | |
1.2 | Acting as the AP, the request is evaluated and compared to existing property portfolio. AP consults with parties including Space Team. AP arranges meeting with Client to discuss. | Manager, Leasing and Commercial Portfolio | 2 weeks |
1.3 | AP completes market scan to determine fair market rates and analyse other available Real Estate on the market at the time. | Manager, Leasing and Commercial Portfolio | 2 weeks |
1.4 | If the existing Real Estate still represents the best option in the area, the AP negotiates a new lease period of 3 years or less. If the market scan identifies better alternative Real Estate, then Process 3 – New Lease – Small, shall be followed. | Manager, Leasing and Commercial Portfolio | 2 weeks |
1.5 | Check the last Real Estate audit for outstanding actions. If any action is being delayed by the Landlord, ensure they are resolved as part of the lease renewal process. NOTE: Safety and security are very important and should not be compromised in residential Real Estate. | Manager, Leasing and Commercial Portfolio | 2 weeks |
1.6 | AP signs Lease. | Manager, Leasing and Commercial Portfolio | 1 week |
1.7 | Arrange for Landlord or Agent to sign Lease. | Manager, Leasing and Commercial Portfolio | 1 week |
1.8 | AP to;
| Manager, Leasing and Commercial Portfolio | 1 week |
Process 2 – Renewal Lease – Large
Typically, this process will cover the exercising of an option of an existing lease, or the landlord offering a new lease to JCU of commercial Real Estate, for example a city campus.
Estate Advisory Committee endorsement is a necessary step of this process.
Ideally the need to extend or renew an existing lease should have been identified in the annual planning process and therefore be preapproved.
Use this process if:
- The Real Estate has been leased by JCU previously; and
- JCU has an option to exercise to grant a further term; and
- The Real Estate is not covered by Process 1.
Step | Action | Responsible Officer | Timing |
2.1 | AP notifies Client of option 9 months prior. | Manager, Leasing and Commercial Portfolio | |
2.2 | Client submits a Real Estate Request Form to Manager, Leasing and Commercial Portfolio. Request should include supporting documentation e.g., budget, future funding source, demand analysis, long term plan. Demand analysis should include a record of historic use for the prior period. | Client | 4 weeks |
2.3 | AP reviews and drafts lease renewal documentations and consults with Client. | Manager, Leasing and Commercial Portfolio | 3 weeks |
2.4 | If the renewal has not been preapproved in the annual planning process, the Client drafts Estate Advisory Committee (EAC) paper seeking approval. | Client | 2 weeks |
2.5 | AP submits paper to EAC and EAC consider paper and recommend to the Vice Chancellor. Approved – AP goes to step 6. Not approved – AP notify Client and Landlord and commence departure from tenancy. | Manager, Leasing and Commercial Portfolio EAC | Up to 12 weeks |
2.6 | Check the last Real Estate audit for outstanding actions. If any action is being delayed by the Landlord, ensure they are resolved as part of the lease renewal process. NOTE: Safety and security are very important and should not be compromised. | Manager, Leasing and Commercial Portfolio | 2 weeks |
2.7 | Exercise option in writing with assistance from JCU Legal if required; and Review proposed documents provided by landlord with JCU Legal. | Manager, Leasing and Commercial Portfolio | 2 weeks |
2.8 | Negotiate a fair market rent. Note: these mechanisms are generally set out in the lease, leaving little room for negotiation. AP to ensure compliance with lease provisions. | Manager, Leasing and Commercial Portfolio | 4 weeks |
2.9 | AP to:
| Manager, Leasing and Commercial Portfolio | 2 weeks |
Process 3 – New Lease – Small
Typically, this process will be used for residential property such as student accommodation but may also be used for other short-term lease arrangements. Ideally this need should have been identified in the annual planning process.
Note – the Client is not permitted to make any enquiries with any third party, agent, agency, developer, or anyone other than the AP.
Use this process if:
- The Real Estate has not been leased by JCU previously; and
- The Lease term is 3 years or less; and
- The proposed gross rent (including outgoings) will not exceed $50,000 + GST per annum.
Step | Action | Responsible Officer | Timing |
3.1 | Client identifies a need and submits a Real Estate Request Form to Manager, Leasing and Commercial Portfolio. Request should include supporting documentation e.g., budget, demand analysis, long term plan. | Client | |
3.2 | Request evaluated and compared to existing property portfolio, AP consults with parties including Space team. AP arrange meeting with Client to discuss. | Manager, Leasing and Commercial Portfolio | 1 week |
3.3 | If the AP agrees that new Real Estate is still required, the Client completes a Preliminary Acquisition Checklist, including the provision of funding source. | Client | 1 week |
3.4 | AP completes market scan, then shares and discusses results with Client. | Manager, Leasing and Commercial Portfolio | 2 weeks |
3.5 | Once a preferred option is agreed, AP negotiates with the Landlord or Agent. | Manager, Leasing and Commercial Portfolio | 1 week |
3.6 | Organise and complete a physical inspection, including safety, security, building works, etc with a cost estimate. Present a go / no go preliminary recommendation to the Client for approval and budget. Obtain Landlord or Agent approval to complete works. NOTE: Safety and security are very important and should not be compromised. | Manager, Leasing and Commercial Portfolio | 2 weeks |
3.7 | AP signs Lease. | Manager, Leasing and Commercial Portfolio | 1 week |
3.8 | Arrange for Landlord or Agent to sign Lease and exchange keys. | Manager, Leasing and Commercial Portfolio | 1 week |
3.9 | AP to;
| Manager, Leasing and Commercial Portfolio | 1 week |
Process 4 – New Lease – Large
Typically, this process will be used for leasing commercial Real Estate, for example a city campus. The need to acquire large commercial space is a response to a strategic business decision and therefore in principle approval has already been granted, subject to finding the correct Real Estate.
Due to the scale of the investment in a large Lease and the potential risks, due diligence is an essential early step in this process, and it shall therefore occur much earlier in the program and may require external consultants as well as the JCU team.
Estate Advisory Committee endorsement is a necessary step in this process once the preferred Real Estate is identified.
Note – the Client is not permitted to make any enquiries with any third party, agent, agency, developer, or anyone other than the AP.
Use this procedure if:
- the Real Estate has not been leased by JCU previously; and
- the Real Estate is not covered in Process 3.
Step | Action | Responsible Officer | Timing |
4.1 | DVC S&R will inform the Estate Director of the business need. | DVC S&R | |
4.2 | An Estate Directorate Project Manager (PM) will be assigned to the project and the AP will be made aware of the Real Estate need. | Director Estate | 1 week |
4.3 | The PM and AP will consult with the Estate Space Team and take a brief from the Client. | Project Manager and Manager, Leasing and Commercial Portfolio | 2 weeks |
4.4 | The Estate Team will create a space requirement from the Client brief. | Project Manager | 4 weeks |
4.5 | Using the space requirement, AP completes a market scan, then shares and discusses the results with PM and Client. | Manager, Leasing and Commercial Portfolio | 2 weeks |
4.6 | If the proposed Real Estate is viable, AP develops an acquisition strategy and shares with the Client and PM and commences initial negotiations. | Manager, Leasing and Commercial Portfolio | 3 weeks |
4.7 | Organise complete due diligence of the Real Estate to inform a go /no go decision and the EAC Paper. | Project Manager | 4 weeks |
4.8 | AP and PM develop total cost of project and present to Estate Advisory Committee for approval, which may be subject to further due diligence. If not approved, close project, or start at stage 2 again. | Project Manager and Manager, Leasing and Commercial Portfolio | 4 weeks |
4.9 | AP interaction with agents and owners to negotiate suitable terms for the contract. | Manager, Leasing and Commercial Portfolio | 4 weeks |
4.10 | PM completes due diligence, including obtaining town planning advice and consultation with local council. | Project Manager | 3 weeks |
4.11 | JCU Legal and external lawyers will review the contract and confirm it is OK to proceed. | Manager, Leasing and Commercial Portfolio | 2 weeks |
4.12 | Present Lease and recommendations to the DVC S&R for execution. | Manager, Leasing and Commercial Portfolio | 1 week |
4.13 | Arrange for Landlord or Agent to sign Lease. | Manager, Leasing and Commercial Portfolio | 1 week |
4.14 | AP to;
| Manager, Leasing and Commercial Portfolio | 1 week |
Related policy instruments
James Cook University Act 1997
Statutory Bodies Financial Arrangements Act 1982 (Qld)
Body Corporate and Community Management Act 1997 (Qld)
Residential Tenancies and Rooming Accommodation Act 2008 (Qld)
Schedules/Appendices
JCU Searches List
Initial Concept Template
Draft Acquisition Strategy
Administration
NOTE: Printed copies of this procedure are uncontrolled, and currency can only be assured at the time of printing.
Approval Details
Policy Domain | Estate and Facility Management |
Policy Custodian | Deputy Vice Chancellor, Services and Resources |
Approval Authority | Estate Committee |
Date for next Major Review | 30/11/2028 |
Revision History
Version | Approval date | Implementation date | Details | Author |
23-1 | 30/11/2023 | 14/12/2023 | Procedure established. | Manager, Leasing and Commercial Portfolio |
Keywords | Lease, real estate, disposal, auction, acquisition, land, property |
Contact person | Manager, Leasing and Commercial Portfolio |