Myer Beats Landlord’s Litigation Over Chadstone Payments
Myer has won a litigation battle with property tycoon John Gandel, after the Supreme Court of Victoria dismissed his company’s bid to receive $20m in leasing and unpaid outgoings at Chadstone Shopping Centre.
On Monday, the Supreme Court of Victoria handed down judgement in favour of Myer and dismissed the claims made by Gandel’s company.
The legal action was taken by Bridgehead and Perpetual, the centre’s landlord and the trustee for Vicinity Centres, which owns the other half of Chadstone.
Bridgehead had alleged there was a mutual mistake in the drafting of the variable outgoings provisions in the lease for the Myer Chadstone store “or that those provisions had been misinterpreted”.
The company “sought 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.”
Vicinity Centres said is was disappointed with the court’s ruling and is considering its options in relation to the court’s decision.”
Earlier this month, Chadstone was independently valued at $6.0 billion (Vicinity share: $3.0 billion), with the capitalisation rate firming from 4.25 per cent to 3.75 per cent.
In December last year, Vicinity and Gandel Group confirmed AccorHotels as the chosen operator of its prized retail asset.
Inside Retail has contacted Myer for further comment.
Article by Inside Retail.