What happened?
Sentinel Asset Management Pty Ltd ("the Lessor") owned commercial premises in Queensland and provided notice to Primo Moraitis Fresh Pty Ltd ("the Lessee") that the rent was due for market review on 7 May 2014. Despite a 30-day time limit in the Lease for the lessee to give the Lessor its own assessment of the current market rent, the Lessee did not notify the Lessor of its assessment until almost two months after the notice was provided. The Lessee's assessment was that the rent should remain unchanged, however a new rent was prescribed that was 22% higher than the passing rent.
Why this outcome?
As a consequence of the Lessee missing the deadline of challenging the market review notice given by the Lessor, and a lack of provision of compelling arguments for their case, any attempt at avoiding this outcome failed.
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