Topic: NSW:Does an existing (commercial) lease override a redevelopment proposal?

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01/11/2017 at 4:30 pm #11433 Reply | Quote
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Flatchatter
I own a commercial strata in a very old building, in Sydney, that is ripe for demolition/redevelopment. Over 75% of lot owners support a redevelopment of the site, however an owner, with 20% of the allocated strata lots is resisting redevelopment,claiming that their 20 year lease (to an associated entity) takes precedence over the express wishes of the majority decision (80%) of other lot owners.

Is there a legal precedent? How does the new strata legislation handle this situation?
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19/12/2017 at 10:18 am #28890 Reply
SaltyOne
Flatchatter
I can’t imagine what argument that owner could be relying on. If the premises subject to lease are no longer available, due to events beyond the control of the lessor, then the lease terminates. There should be provisions in that lease for how that happens, but that’s between the owner and his tenant. It’s no different than if the property was resumed, or any number of other circumstances where the property is no longer available. Commercial or non-commercial makes no difference.

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Reply To: NSW:Does an existing (commercial) lease override a redevelopment proposal?

PLEASE ... If your property is not in NSW, mention its location (state). Don't identify companies or individuals by name. Don't mention or promote your company or services. Keep acronyms and initials to a minimum. Please, don’t use “quote” unless there is a specific point to which you wish to refer, then highlight (define) that specific passage before you click on "quote". Otherwise just use reply. THANKS.