Commercial Tenancy (Retail Shops) Agreements Act 1985

A provision of a retail shop lease about the relocation of the tenant’s business is void unless —

it is in the form prescribed for the purposes of this section; or

it is in a form approved by the Tribunal under subsection (3); or

if 5 years of the term of the lease (including any period during the extension of the term under an option to renew) have already expired, it is in accordance with subsection (2).

A provision of a retail shop lease about the relocation of the tenant’s business is in accordance with this subsection if it contains provisions to the following effect —

the tenant’s business cannot be required to be relocated unless the landlord has given the tenant at least 6 months written notice of relocation (a relocation notice);

the relocation notice is to give details of an alternative retail shop (the alternative shop) to be made available to the tenant, and if the existing retail shop is situated in a retail shopping centre, the alternative shop is to be situated in that shopping centre;

the tenant is to be offered a new lease of the alternative shop —

on the same, or better, terms and conditions as the existing lease except that the term of the new lease is to be no shorter than the remainder of the term of the existing lease; and

the rent for the alternative shop is to be no more than the rent for the existing retail shop, adjusted to take into account any difference in the commercial values of the existing retail shop and the alternative shop at the time of relocation;

the landlord is to pay the tenant’s reasonable costs 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 existing retail shop immediately before the relocation, but only to the extent that they are reasonably required in the alternative shop; and

packaging and removal costs incurred by the tenant; and

legal costs incurred by the tenant;

if the landlord does not offer the tenant a new lease of an alternative retail shop then the landlord is liable to pay to the tenant such reasonable compensation as is agreed in writing between the parties, or determined by the Tribunal.

The Tribunal may, on application made to it by the landlord, notice of which has been given to the tenant, approve of the inclusion in a retail shop lease of another form of relocation provision under subsection (1)(b) if the Tribunal is satisfied that special circumstances exist by reason of which such approval ought to be given.

A landlord in relation to a retail shopping centre may make an application under subsection (3) as to any number of retail shop leases in respect of that centre where the landlord is of the opinion that the same special circumstances exist in relation to each lease the subject of the application, and the Tribunal may exercise its powers under that subsection accordingly.