A recent VCAT decision has determined that a lease can fall out of the operation of the Retail Leases Act 2003 (Vic) where the rent and outgoings were under $1 million when the lease was entered but over the term of the lease the rent and outgoings exceeded $1 million.
In Verraty Pty Ltd v Richmond Football Club Ltd (Building and Property) [2019] VCAT 1073, VCAT determined that a lease can fall out of the operation of the Retail Leases Act 2003 (Vic) where the rent and outgoings were under $1 million when the lease was entered but over the term of the lease, the rent and outgoings exceeded $1 million. You will remember that where such rent and outgoings exceed $1 million, the Act does not apply.
In a future update, I will provide further commentary on the case. It also seems to leave open the possibility that if a lease is governed by the Act and a tenant company becomes listed as a public company, then the Act would cease to apply.
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