ASDA Stores Ltd v Salya Investments Ltd [2007] EWHC 2399 (Ch) (09 October 2007)

ASDA Stores Ltd v Salya Investments Ltd [2007] EWHC 2399 (Ch) (09 October 2007)

Extensions to the original building carried out by the tenant are to be taken into account for both five yearly and intermediate rent reviews under the lease. The lease does not distinguish between free-standing buildings and extensions for these purposes. The rent review provisions require the value of the land and...

Source-derived case information.

Citation
[2007] EWHC 2399 (Ch)
Parties
Claimant: Asda Stores Ltd.; Defendant: Salya Investments Ltd.
Jurisdiction
England and Wales
Judgment Date
09 October 2007
Procedural Posture
Commercial Lease Construction (chancery Division) / Judgment After Trial
Outcome
Declaration granted in favour of the defendant's construction; costs awarded to the defendant; permission to appeal refused.
Legal Topics
Rent Review, Construction of Lease, Tenant's Improvements, Intermediate Rent Review, Rack Rental Value
Landlord and Tenant Property Law Commercial Leases Rent Review Construction of Lease Tenant's Improvements Intermediate Rent Review Rack Rental Value

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Parties

Asda Stores Ltd.

Claimant

Salya Investments Ltd.

Defendant

Procedural Posture

Commercial Lease Construction (chancery Division) / Judgment After Trial

Legal Issues

  1. 1 Whether extensions and works carried out by the tenant constitute 'buildings' for the purposes of rent review under the lease
  2. 2 Whether such works should be disregarded as tenant's improvements when calculating rack rental value for rent review purposes

Ratio Decidendi

Extensions to the original building carried out by the tenant are to be taken into account for both five yearly and intermediate rent reviews under the lease. The lease does not distinguish between free-standing buildings and extensions for these purposes. The rent review provisions require the value of the land and all buildings erected thereon, including extensions, to be considered, and the disregard of tenant's improvements does not apply to such works where the lease so provides.

Court Disposition

Declaration granted in favour of the defendant's construction; costs awarded to the defendant; permission to appeal refused.

Orders

  • Declaration to be agreed by counsel and approved by the court reflecting that extensions are included in rent review calculations.
  • Claimant to pay defendant's costs, summarily assessed.