In this proceeding, the landlord of a Centrelink building in Berserker, Rockhampton sought a declaration that an expert market rent review was invalid because it did not comply with the requirements of the lease. The lease required the valuer to take into account market rents ‘of comparable premises in the suburb or town within which the Building is situated (and where there is insufficient evidence of comparable premises in the relevant suburb or town, then of comparable premises within a comparable suburb or town within the immediate vicinity of that in which the Building is situated)’. The Court held that the quoted words had the effect that the valuer was not permitted to take into account the rent of premises in comparable suburbs or towns that were not ‘within the immediate vicinity’ of Berseker or Rockhampton. Since the valuer had taken into account rental evidence for a premises in Aitkenvale, Townsville, the rent determination was held to be invalid.
Michael May appeared for the applicant, instructed by Cooper Grace Ward.
The judgment is published here.
