The key is the tenancy arrangement. In the other thread when you push him the answers seems more and more dodgy. Now he has confirmed that Perfect Morning Sdn Bhd is the tenant, but unable to say anything about that company's relationship to Best Western. If this is a company that is created for the sole purpose of renting from the owners then that is bad. Possibly what is happening is that the Perfect Morning Sdn Bhd is renting from owners, and then sub-letting to Best Western. In the worst case, they can just throw away Perfect Morning, and they will escaped unscathed, with the burden falling fully on owners.

The other thing to note is that while the current GRR is a good number, 10 years is a very long time. The renewal option is likely to be at the same/similar rate, meaning towards the end of the 10 years, the GRR is no longer attractive compared to the property value. So if times are good, they renew at a relatively cheap rate. If times are bad, they don't renew. If times are very bad, they can violate the tenancy and fold the "middle-man" company (if my conjecture on the tenancy arrangement is true).

This post has been edited by Balrog: Mar 20 2013, 11:06 AM