Deeds of cross-guarantee as lease security – what a landlord needs to know
We have recently seen deeds of cross-guarantee being offered up by tenants looking to provide landlords with alternative forms of security to bank guarantees, as banks tighten up lending requirements, or parent company guarantees. What is a cross-guarantee? Typically a deed of cross-guarantee is lodged by a parent company with ASIC in support of […]
ReadmoreApplication of the RLA
Just when you thought navigating Victoria’s retail legislation couldn’t get any more complicated. A recent decision of the Victorian Civil and Administrative Tribunal (VCAT) in Bulk Powders Pty Ltd v Seicon Pty Ltd (Building and Property) [2018] VCAT 2000 bucks the trend when it comes to determining the application of the Retail Leases Act 2003 […]
ReadmoreThe Dangers of Side Letters
Introduction Whilst not a brand new case, we have chosen to review ACN 151 368 124 v Pro-Pac Packaging (Aust) Pty Ltd 20171 because it highlights the dangers of an increasing trend in our industry – use of the side letter to get around formal document negotiation deadlocks and deadlines. Unfortunately the case highlights that […]
ReadmoreHeads of Agreement
The Supreme Court of Victoria has confirmed in Casdar Pty Ltd v Joseph Fanous [2017] VSC 616 that a Heads of Agreement signed by a Landlord and Tenant followed by post contractual conduct will not always immediately bind the parties. Casdar Pty Ltd (Landlord) appealed a decision from the Victorian Civil and Administrative Tribunal (VCAT) […]
ReadmoreWoolworths prevails in test of ACCC enforceable undertaking
In Woolworths Limited v About Life Pty Ltd [2017] NSWSC 1117, Woolworths tested the scope of the enforceable undertakings it, and a number of other supermarket operators, gave to the ACCC not to include, or give effect to, restrictive provisions in supermarket lease agreements. Woolworths ultimately prevailed in this case. The decision is useful for […]
ReadmoreCB Cold Storage
The Victorian Court of Appeal has now confirmed Croft J’s decision in CB Cold Storage Pty Ltd v IMCC Group Pty Ltd [2017] VSC 23 that a lease of a wholesale cold storage facility is a “retail premises lease” caught by the provisions of the Retail Leases Act (RLA), dismissing an appeal by the landlord […]
ReadmoreApplication of RLA
The recent decision in CB Cold Storage Pty Ltd v IMCC Group Pty Ltd [2017] VSC 23 (CB Cold Storage) could mean that for landlords leasing premises to industrial or warehousing businesses in Victoria, land tax may not be recoverable from the Tenant, market rent reviews that do not allow the rent to decrease may […]
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