St Martin's Property Investments Ltd v Cable & Wireless UK Plc


Reference:
[2007] All ER (D) 68 (Apr), LTL 13/4/2007

Date:
4th April 2007

Court:
High Court

Comment:

This was a Part 8 claim brought by the landlord and concerning the true construction of a rent review clause which stipulated how the open market rent was to be calculated. The original clause stated that the open market rent was to be determined on the assumption that 'the demised premises comprise High Class Professional or Commercial Offices with a net internal area of 124,019 square feet'. This clause was subsequently varied, to include the assumption that the premises were either such offices, or a computer centre. The landlord submitted that the rent should be determined on the basis of hypothetical buildings meeting the stipulations of the clause, the defendant submitted that the rent should be determined on the basis of the actual premises, on the assumption that they were to be used as expressed in the lease.


Held:

That the true construction of the clause was as submitted by the landlord, and thus what was to be valued was a hypothetical building in accordance with the stipulations. The variation of the clause did not affect its true meaning.

On its proper construction, a rent review clause in a lease of a computer data centre required that the open market rent of the building was to be assessed on the assumption that the demised premises comprised high class commercial offices.

Associated Members:


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