Popular Adelaide pub faces closure over rent dispute
The Austral in Adelaide’s CBD is facing closure after a fight with its landlord over a lease dispute worth $100,000.
The pub, which is run by cousins Brettski Stewart and Ian Stewart, is one of Adelaide’s most popular. The pair renovated the venue in 2020 after signing a five-year term with “rights of renewal” with Austral Properties. They spent 400,000 to spaces for live music, DJs, functions and bars.
The cousins instigated legal proceedings against the landlord when they found out they were at risk of being kicked out.
The landlord has claimed it never received a notice of renewal from the cousins, who claim it was sent within the required period of time.
Ian Stewart told The Advertiser that the pair had no intention of letting the renewal lapse after spending so much money on renovations.
“To leave after two years would be ludicrous. We want to make further investment.”
The pair had hoped to be in the venue for 30 years.
“We’re just wanting to get on with business,” he said. “We want to get the second and third floor renovated.”
He believes a miscommunication from their property manager has forced them to go to court and said there were “no hard feelings” toward Austral Properties.
“The property manager and their method of communication,” is what is being questioned.
In court documents, the pair allege they sent a letter to renew the lease dated March 15, 2023.
“The applicant alleges that by a letter dated 15 March 2023, the applicant exercised its right of renewal within the time required by the lease,” it reads.
“The respondent denies that the applicant has exercised its right of renewal.”
The documents indicate that the pub operators seek acknowledgment from the landlord of their lease through 3 December, 2028.
Additional documents filed by Austral Properties assert that the applicant lacks the right to occupy the property due to their failure to issue a notice of renewal. The documents further allege that the tenants did "not comply with the express terms of the agreement" and failed to send a renewal letter within the required time frame and to the specified address.
“On 21 June 2023, the property agent of the respondent emailed the applicant informing it that the period to exercise its right to renew had lapsed and that no notice had been received within the time frame,” it reads.
“The applicant responded on the same day by email …, to the property manager agent of the respondent, claiming that an alleged notice was ‘sent to your office in early March’ and later in the same email communication it was said the alleged notice was sent ‘in or around 9 March 2023.
“No notice dated 9 March 2023, has ever been provided to the respondent, its solicitors, or its property manager agent.”
Jonathan Jackson, 28th May 2024
