Rohan Ingleton unpacks a recent decision setting aside another
valuation.
In brief: As noted in my email last Thursday,
last week another valuation was set aside in The Bay and Bridge
Hotel Pty Ltd v Ventofond Pty Ltd (Building and Property)[2018]
VCAT 1489.
VCAT determined that a valuer, in determining a market rent,
should disregard an extension to the liquor licence and gaming
machine entitlements successfully applied for by the tenant, as
such extended liquor licence and the gaming machine entitlements
were "improvements" to be disregarded under the terms of
the lease. The tenant in this decision was successful in having the
valuation set aside.
What you need to know:
The valuer would have determined the rent based upon the
turnover of the tenant's business, rather than on a comparative
approach. When using this method (which is perfectly permissible) a
valuer needs to take careful notice of the terms of the market rent
review clause in the lease and
