[2025] VCAT 545
General information, not legal advice.
Victorian Civil and Administrative Tribunal
2025-06-11
Mr J
Original judgment source is linked above.
LANDLORD AND TENANT - Section 4 of the Retail Leases Act 2003 (Vic) - whether leased premises fall within the definition of retail premises - whether the express terms of the lease permit the leased premises to be used wholly or predominantly for retail activity - whether antecedent negotiations and communications are relevant in construing the terms of the lease agreement - whether the tenant's historical and current business activities are relevant in construing the terms of the lease agreement.
SJV Properties Pty Ltd (ACN: 114 143 832) ATF Merkouri Family trust
Grand View Trading Pty Ltd v SJV Properties Pty Ltd (Building and Property) [2025] VCAT 545
Mr H Chang, director, with Mr J Chang with interpreter, Ms F Lee
(1) In this Act, retail premises means premises, not including any area intended for use as a residence, that under the terms of the lease relating to the premises are used, or are to be used, wholly or predominantly for -
(a) the sale or hire of goods by retail or the retail provision of services; or
(b) the carrying on of the specified business or a specified kind of business that the Minister determines under section 5 is a business to which this paragraph applies.
Warehouse, manufacturing, importing, storage and sale of stonework machinery and tools and portable housing.
The parties expressly agree that the Permitted Use expressly excludes any use which would result in the Premises being retail premises pursuant to the Retail Leases Act 2003.
Clarification and Variation of General Conditions
(t) The parties agree that Building Outgoings reimbursable by the Tenant shall include:
- Any Owners Corporation fees or levies, excluding any sinking fund or levies of a capital nature.
- Land tax on a proportional basis and subject to any trust surcharge and sub-clause (b) of the definition of Building Outgoings shall be deemed amended accordingly.
(cc) The parties agree that, on the Commencement Date, this Lease is not subject to the Retail Leases Act 2003.
(dd) The Tenant agrees and warrants to the Landlord that it actively restricts access to the majority of the premises solely to its employees, contractors and a limited number of other authorised personnel. The Tenant expressly agrees and confirms that the general public does not have unlimited access to the Premises.
(gg) As the Premises are not "retail premises" pursuant to the Retail Leases Act 2003, the Tenant agrees and warrants to the Landlord that it actively restricts access to the majority of the Premises solely to its employees, contractors and a limited number of other authorised personnel or invitees. With respect to the portable housing use, the parties agreed that that use will be limited to less than 50% (50%) of the available area in the warehouse section of the Premises. The Tenant warrants that the predominant area of the Premises is always kept secure from third parties and that any public access to the portable housing use area shall be subject to Tenant supervision an invitation. The Tenant expressly agrees and confirms that the general public does not have unlimited access to the entirety of the Premises.
"Warehouse, manufacturing, importing, storage & retail of stonework machinery & tools and portable houses"
A copy of my contemporaneous file note is at page 76 of the bundle.
(a) I informed him that the use of the word "retail" in the lease is not in keeping with the Landlord's intention and that our instructions from the Landlord were to prepare a commercial lease.
(b) Jack Chang informed me that they understand and are prepared to proceed on the basis of a commercial lease.
(c) He stated further that, for them, the issue is ensuring that Grand View Trading can use part of the Premises as a display area for the portable house business.
(d) We discussed the limits of Grand View Trading's use of the Premises for the portable housing business and Jack Chang suggested that their intention was to use perhaps 50% of the Premises for portable houses.
(e) We ended the call on the understanding that I would obtain further instruction.
Attached and marked "CM 13" is a copy of the rental application.
(2) Except as provided by Part 10 (Dispute Resolution), this Act only applies to a lease of premises if the premises are retail premises (as defined in section 4) at the time the lease is entered into or renewed.
... With respect to the portable housing use, the parties agree that use will be limited to less than fifty percent (50%) of the available area in the warehouse section of the Premises...
The parties expressly agree that the Permitted Use expressly excludes any use which would result in the Premises being retail premises pursuant to the Retail Leases Act 2003.
Warehouse, manufacturing, importing, storage and sale of stone work machinery and tools and portable housing.
It is trite law that the primary duty of the court in construing a written document is to endeavour to discover the intention of the parties from the words of the instrument in which the contract is embodied. Of course the whole of the instrument has to be considered, since the meaning of any one part of it may be revealed by other parts, and the words of every clause must if possible be construed so as to render them all harmonious with one another. If the words used are unambiguous the court must give effect to them, notwithstanding that the results may appear capricious or unreasonable, and notwithstanding that it may be guessed or suspected that the parties intended something different...[6]
But evidence of pre-contractual negotiations is admissible to establish objective background facts known to both parties; to establish that the parties were united in rejecting the possible construction; where the parties have agreed the meaning of a word or phrase in negotiations; to decide (for the purposes of certain consumer legislation) whether a term has been individually negotiated; and to determine which party put forward a particular term.[7]
... pre-contractural conduct is only admissible in questions of construction if the contract is ambiguous and if the pre-contractual conduct casts light on the Genesis of the contract, it's objective vein, or the meaning of any descriptive term.[9]
Situated in the Clayton South Industrial Precinct, the subject property of 1500 sqm is a highly functional office warehouse very well positioned just off Westall Road.
Use of the word 'retail' is not the intent and commercial lease are our instructions.
They [the Tenant] understand...and are prepared to proceed on a commercial lease basis.
...for them to ensuring they can use part of the warehouse as a display...for portable houses.
We refer to our discussion yesterday and confirm that we have received instructions to amend the Lease to address the intent to proceed with a commercial lease whilst allowing for the use of a part of the Premises for the intended new portable housing business with the public being allowed to access display units for that aspect of the business.
Attached for your attention is the amended Lease. We specifically note that the added Additional Provisions (ff) and (gg) on pdf page 29 which confirm your right as Tenant to commence the Portable Housing component of your business on the Premises at a time of your choosing (as we understand from our client and the agent that this will be a new part of your business) and that the public can have access to that part of the Premises (being limited to up to 50% of the warehouse area of the Premises). These amendments will enable the Lease to proceed as a commercial Lease as intended between the parties.
[2] REMG stands for Rhino Engineered Machinery Group, which is a trading name of the Tenant.
[5] Australian Broadcasting Commission v Australasian Performing Right Association Limited [1973] HCA 36; (1973) 129 CLR 99, 109.
[7] Sir Kim Lewison and David Hughes, 'The Interpretation of Contracts in Australia' (Law Book Co 2012), 73.
[10] Affidavit of Hong Chi Chang affirmed on 25 February 2025, [3].
Grand View Trading Pty Ltd
SJV Properties Pty Ltd
(1973) 129 CLR 99
(2001) 53 NSWLR 153