This article is from the Australian Property Journal archive
DEPARTMENT store Myer has won a major legal battle against billionaire John Gandel and Vicinity Centres, the co-owners of Chadstone shopping centre.
Gandel’s company Bridgehead and Vicinity Centres’ trustee Perpetual slapped Myer with a pre-Christmas spoiler in December 23 2016, launching legal action in the Supreme Court of Victoria over Myer’s lease at Chadstone.
Gandel and Vicinity Centres alleged Myer had been underpaying its annual rent increases for a 16-year period.
They alleged there was a mutual mistake in the drafting of the variable outgoings provisions in the lease for Myer’s Chadstone store, or that those provisions had been misinterpreted.
Myer entered a 30-year lease in 1998 with one option for a further term of 15 years.
The JV partners sought, amongst other things, rectification of the lease and payment of alleged unpaid outgoings in respect of a period between 2000 and 2016 totalling $19.14 million, plus GST, as well as interest and costs.
Myer disputed the JV partners allegations and denied any liability.
Yesterday the Supreme Court of Victoria found in favour of Myer and dismissed the claims.
In his judgement, Justice Croft said:
“The plaintiffs’ claims fail whether on the basis of claims with respect to the proper construction of the provisions of the Lease or its claims for rectification of those provisions.”
A spokeswoman for Vicinity Centres told Australian Property Journal that the group is considering its options.
“Vicinity Centres is disappointed with the Court’s ruling today and is considering its options in relation to the Court’s decision,” the spokesperson said.
Australian Property Journal
