The tenants and landlord of the Austral Hotel are in an ongoing legal dispute over whether or not the operators can continue at their investment, after disputes over an alleged renewal agreement.
In 2020 Brettski Stewart and Ian Stewart, cousins, entered an agreement for the lease of one of Adelaide’s most popular pubs – the three-storey Victorian Austral Hotel, established in 1880.
The eager tenants paid $100K for an initial term plus five-year options, and went on to invest a further $400K into renovating the hotel, reviving the bars, and spaces for live music and DJs, and functions.
However, they have instigated legal proceedings against their landlord, Austral Properties, after learning they may be evicted.
According to documents filed in the District Court by the Stewarts, a letter was sent dated 15 March 2023, exercising their “right of renewal within the time required” and requesting the lease continue until December 3, 2028.
But the landlord says the renewal was never received. Documents filed by Austral claim the applicant failed to send a notice of renewal and does not have a right to occupy the property. It alleges the tenants did not comply with “the express terms of the agreement” and submit a letter of renewal in the required time frame and to the correct address, detailing that sending it to the property manager agent “is not proper service of notice in compliance with the lease”.
Reputedly, Austral’s property agent emailed the Stewarts on 21 June last year, informing them that their renewal window had lapsed as no notice had been received. The operators replied the same day, reportedly saying the notice was sent “around 9 March”.
The property agent apparently responded that no such notice had ever been provided to Austral, its solicitors, or the property manager agent.
The Stewarts’ filing goes on to outline further requests for the renewal, on 29 June and 7 July 2023, with the agents not responding, and on 10 July a scanned copy of the original renewal notice was emailed to the agent.
Austral’s court filings state that it is of the position the supposed original letter was in fact not created until after the date it was claimed to have been sent.
Austral also claims they were owed more than $87K for a period, and the operators were in breach of the lease. The amount was paid on 29 June 2022, and Austral demanded a further or replacement bank guarantee.
Auxiliary Judge Wayne Chivell heard motions on the case last week, ruling the cousins need to provide a “further revised statement of claim”. The case will return to court at a later date.
Ian Stewart told The Advertiser they had every intention of renewing the lease, given their investment, and thinks the issue is one of miscommunication by the property manager.
“To leave after two years would be ludicrous. We want to make further investment.”
The Stewarts say they hope to occupy the property for at least 30 years, and are looking to renovate the other levels.
“We’re just wanting to get on with business.”
