Another interesting case about s 35 of the Retail Leases Act 2003 (Vic) – part 2

August 13, 2024

Property / leasing

In an earlier post here I discussed another decision from VCAT holding that rent review by CPI or to the current market rent with a ‘cap‘ on increases is inconsistent with s 35(2) of the RLA 2003.

A number of readers have told me that they are following this issue closely and I noted on my last post that I would update readers if an appeal is filed.

The unsuccessful party in the VCAT case has filed an application for leave to appeal in the Supreme Court.  The appeal does not yet have a hearing date.

I will update readers as the appeal progresses.

Sam Hopper's avatar

About Sam Hopper

Sam is a property and insolvency barrister.

View all posts by Sam Hopper

Subscribe

Subscribe to our RSS feed and social profiles to receive updates.

One Comment on “Another interesting case about s 35 of the Retail Leases Act 2003 (Vic) – part 2”

  1. Unknown's avatar
    Anonymous Says:

    Interesting decision. Technically it may be correct at law, however it surprises me that VCAT would not view the “cap” as in the tenants best interests – unless the tenants best interests are in fact going to a market determination, as the rent and market has declined since the last review of rent.

    On one hand the technical legal interpretation of 35(2) is made. On the other hand the opportunistic strategy of seeking a market review (not then available in the Lease) because this will provide a lower rent in the current market – is very clever.

    Reply

Leave a reply to Anonymous Cancel reply