Annandale Pharmacies (NQ) Pty Ltd trading as Chemmart Annandale v The Angliss Estate (Annandale) Pty Ltd

The case of Annandale Pharmacies (NQ) Pty Ltd trading as Chemmart Annandale v The Angliss Estate (Annandale) Pty Ltd involves a dispute between the tenant and the landlord regarding the determination of the current market rent for a retail tenancy. The matter was heard in the Queensland Civil and Administrative Tribunal (QCAT) and subsequently appealed to the Queensland Civil and Administrative Tribunal Review Board (QCAT Review Board). The tenant exercised an option to renew the lease and sought a determination of the current market rent. A specialist retail valuer was appointed, and a determination was made. However, the tenant challenged the first determination, and the Tribunal set it aside, ordering a further determination to be made. The Tribunal was required to determine whether the second determination must be set aside, and it found that the second determination did not comply with the Retail Shop Leases Act 1994 (Qld).

The legal issues before the Tribunal were whether the second determination of the current market rent complied with the statutory requirements of the Retail Shop Leases Act 1994 (Qld) and, if not, whether the determination should be set aside. The Tribunal examined the process followed by the specialist retail valuer in making the second determination and found that it did not comply with the statutory requirements. The Tribunal noted that the valuer did not consider all relevant factors, including the specific characteristics of the property, the terms of the lease, and the market conditions. The Tribunal also found that the valuer did not provide sufficient reasons for the determination, which was a requirement under the Act. The Tribunal concluded that the second determination did not comply with the Act and was therefore invalid.

The Tribunal set aside the second determination of the current market rent and ordered that a further determination be made in compliance with the Act. The Tribunal also ordered that the specialist retail valuer who undertook the further determination be different from the one who made the second determination. The Tribunal noted that the reasons for its decision would be provided to the new specialist retail valuer to ensure that the further determination complied with the statutory requirements. The Tribunal emphasized the importance of following the statutory requirements when determining the current market rent for a retail tenancy, as set out in the Retail Shop Leases Act 1994 (Qld).

The final orders of the Tribunal were that the determination of current market rent by Mr Gregory Clarke dated 20 November 2015 did not comply with the Retail Shop Leases Act 1994 (Qld) and was not a valid determination. The determination was set aside, and a further determination of current market rent was to be undertaken in compliance with the Act by a different specialist retail valuer. The Tribunal also ordered that the reasons for its decision be provided to the new specialist retail valuer for the purpose of undertaking the further determination.