Welcome to the Nelson Airport Tenant Resources page. In this section you’ll find useful information for tenants, including how rent reviews are conducted, our framework for expiring ground leases, how to get approval for works within the airport environment, maintenance requests and more.
If you’re not currently a tenant, but wish to make an enquiry about an airport property or development, you can do so using the contact options at the bottom of this page.
Disclaimer
While content in this Tenant Resources section will apply to the majority of tenancies at Nelson Airport, individual tenancy agreements may contain clauses that provide for different rights, processes, obligations, and outcomes to those indicated on this page.
Nothing on this page:
modifies or extinguishes the rights, processes, obligations and outcomes established through individual tenancy agreements, or
creates new rights or obligations
Where contents of this Tenant Resources section differ from what is provided for in an individual tenancy agreement, the tenancy agreement prevails.
Prior Approval of Works
The airport precinct is a complex operating environment and a high level of safety and security awareness is essential for everyone operating within our boundaries. To ensure the safety and security of everyone using the airport, tenants must obtain written approval from Nelson Airport Limited prior to undertaking any of the following works:
any earthworks or excavation,
any demolition of all or part of any buildings or structures or improvements,
any construction or erection of any buildings, structures or other improvements,
any alterations of additions to buildings, structures or improvements,
any installation, alteration of interference with any equipment, fitting or fixture or any services or other systems relating to the tenancy.
To request a prior works approval, please contact Nelson Airport’s Assets and Facilities Manager.
Nelson Airport Land and Lease
Most of the land occupied by Nelson Airport is owned by the Nelson City Council. A smaller area is owned freehold by Nelson Airport Limited.
The land owned by Nelson City Council is controlled by Nelson Airport Limited in accordance with a long-term lease (Headlease). The Headlease is made up of several documents, including the original Memorandum of Lease together with several variation deeds adding and removing areas.
Land under Nelson Airport’s control is show below. Leased areas are in blue, and freehold owned areas in yellow. More detail is available by clicking the image.
Land controlled by Nelson Airport Ltd. Click image to access more detail.
Rent Reviews
Tenancy agreements with Nelson Airport Limited typically provide for periodic rent reviews. The method used to review rent will depend on the specific provisions of the individual tenancy agreement. The two most common methods provided for are Market Rent Reviews and CPI Rent Reviews.
CPI Rent Reviews
Nelson Airport Limited uses Consumer Price Index figures published by the Reserve Bank of New Zealand for the purposes of CPI rent reviews.
Unless otherwise provided for in the tenancy agreement, a CPI rent review will adjust rent by the percentage increase (not decrease) of the Consumer Price Index from the quarter immediately prior to the last rent review to the quarter immediately before the current rent review.
Nelson Airport Limited will advise the tenant of the outcome of the CPI rent review.
By their nature, CPI rent reviews are formulaic and not subject to challenge (unless a calculation error is suspected).
Market Rent Reviews
Where a market rent review applies, Nelson Airport Limited will begin the review process by commissioning a rental assessment by a professional valuer. The valuer’s assessment will be recorded in a valuation certificate to be provided to the tenant with Nelson Airport Limited’s notice of rent review.
The tenancy agreement will define a period of time within which the tenant may dispute the proposed rent review. Unless the tenant advises otherwise within the defined time period, the rent review is deemed to be accepted.
Where the tenant does advise they wish to dispute the rent review, the tenancy agreement outlines the process to resolve the dispute.
Typically, the rent review dispute resolution process will provide a fixed period for Nelson Airport Limited and the tenant to negotiate an outcome (negotiation period).
Where a negotiated outcome is not reached within the negotiation period, the tenancy agreement will typically provide for a process to determine reviewed rent. That process may allow for valuers to be engaged to determine rent, or for the dispute to be settled through arbitration.
Recovery of Nelson City Council Rates
Most tenancies at Nelson Airport sit within a single land title (Main Title). Nelson City Council assesses Rates against the entire title, not against individual tenancy boundaries.
Tenancy agreements typically provide for Nelson Airport Limited to recover Nelson City Council Rates from the tenant on a fair and just basis. For tenancies within the Main Title, Nelson Airport Limited uses a methodology developed by professional valuers that has undergone both peer and legal review.
Nelson Airport Limited on-charges Nelson City Council Rates to tenants quarterly.
Expiring Ground Leases
Tenancies at Nelson Airport may be separated into two broad categories:
land and buildings leases
ground leases
Land and Buildings Leases
Under these leases, the tenant has the lease right to use leased land and buildings for the activity permitted in the lease, but does not own the building(s) and improvements.
The lease right will persist for a defined term, after which the tenancy will end and the tenant must vacate unless a new lease is confirmed.
Ground Leases
Under these leases, the tenant has the lease right to use the land for the activity permitted in the lease and the tenant owns the building(s).
The lease right will persist for a defined term, after which the tenancy will end and the tenant must vacate unless a new lease is confirmed. When the lease ends, the lease agreement will usually provide the option for the tenant to:
relocate the buildings and improvements and make good the site, or
surrender the buildings and improvements to Nelson Airport Limited ownership without compensation. (Note that, if surrendered, Nelson Airport Limited may still require removal and make good of the site)
Nelson Airport has developed a framework for managing expiring ground leases that provides a pathway for tenants to potentially secure new tenure and/or receive compensation for surrendered buildings and improvements. That framework is available here: