Chemmart Annandale vs The Angliss Estate

State/Jurisdiction:

QCAT https://www.sclqld.org.au/caselaw/QCAT/2017/429 and https://www.sclqld.org.au/caselaw/QCAT/2014/171 Pharmacy lease. Second Specialist Retail Valuer (SRV) failed to determine current market rent in terms of S 29 RSLA. Complexity: 9 / 10; limited evidence at the time; retrospective to 2011

Parties to Dispute:

Annandale Pharmacies (NQ) Pty Ltd trading as Chemmart Annandale v The Angliss Estate (Annandale) Pty Ltd [2017] QCAT 429 (RSL030-16). Parties legally represented.

Our instructions 2 x: make submission to SRV; on failing to determine current market rent in accordance with the Act, act as Tenant’s Expert to overturn determination.

Description of Dispute:

Rent was circa $215,000 at start of option for 2 x 10 year lease. Our evaluation due to renovations redevelopments in area (additional supply in given market) that gross rent ought to be $120,000 or thereabouts. Determining valuer kept the gross rent at a same level.

How Settled:

A third determination has been ordered. Soon after the second valuer made his determination we are informed the centre was sold.   This action has to raise questions? It begs the question; could there have been collusion? The determined rent plus increments has place enormous stress on the business.

Comments:

Inflated rents may significantly inflate the value of any property. Prior to acquiring an investment property, it is strongly suggested that one tests the veracity of the leases and the rent levels.