Retail Leases Act 2022

A retail lease is taken to include the matters set out in this section if the lease provides for the – relocation of the tenant’s business during the term of the retail lease; or termination of the retail lease and offer of a new retail lease of alternative retail premises during the term of the retail lease.

A landlord cannot require a tenant’s business to be relocated, or offer a new lease of alternative retail premises, unless the landlord has given the tenant a notice of the relocation or offer (a relocation notice) that complies with this section.

A relocation notice must state each of the following:details of a proposed refurbishment, redevelopment or extension that are sufficient to indicate a genuine proposal that – is to be carried out within a reasonably practicable time after the relocation of the tenant’s business; and cannot be practicably carried out without vacant possession of the tenant’s retail premises; sufficient details of reasonably comparable alternative retail premises (the alternative premises) to be made available to the tenant that are, in both area and configuration, materially similar to, or better than, the existing leased retail premises; the day by which the tenant must vacate the existing leased retail premises (the relocation day).

Unless otherwise agreed to in writing between a landlord and a tenant, a relocation notice must be given to the tenant at least 3 months before the relocation day specified in the notice.

A tenant is to be offered a new lease of the alternative premises – on terms and conditions similar to, or better terms and conditions than, the existing retail lease except that the term of the new lease is to be no shorter than the remainder of the term of the existing retail lease; or on terms and conditions different from the existing retail lease if the tenant agrees to the different terms and conditions.

If a tenant gives a landlord a written notice of termination within one month after being given a relocation notice by the landlord, the retail lease terminates 3 months after the relocation notice was given or at such other time as the landlord and the tenant agree in writing.

If a tenant does not give a notice of termination in accordance with subsection (6), the tenant is taken to have accepted the offer of a new lease on the alternative premises – on the terms and conditions referred to in subsection (5); or on the terms and conditions that are agreed by the landlord and tenant.

A landlord is to pay a tenant’s reasonable cost of the relocation including (but not limited to) – costs incurred by the tenant in dismantling fittings, equipment or services; and costs incurred by the tenant in replacing, re-installing or modifying finishes, fittings, equipment or services to the standard existing in the retail premises immediately before the relocation, but only to the extent that they are reasonably required in the alternative premises; and packaging and removal costs incurred by the tenant; and any actual reduction in, or loss of, profit incurred by the tenant for the period, when compared to the same period for the previous accounting period.

If a landlord and a tenant cannot agree on the amount to which the tenant is entitled under subsection (8), that amount is to be determined under Part 11.

If a landlord has required a tenant to relocate without offering a tenant a new lease of alternative premises in accordance with this section, the landlord is liable to pay to the tenant such reasonable compensation as is agreed in writing between the landlord and the tenant, or an amount that is determined under Part 11.