ALE Property Group is proposing to increase rents at 78 of its 86 properties in Australian by 10%, a plan that tenant ALH Group is disputing.
The Australian pubs landlord is negotiating with ALH, which disputed about half of the rent notices that it received Aug 3. The tenant added that the rents should decrease by 10%.
If the talks between the two do not result to an agreement, the rent for the related properties will be determined by an independent expert, an outcome that both parties are betting on, The Australian Financial Review reported Sept. 3, citing unnamed industry sources.
The report added that starting in November, a 10% rent hike is the maximum allowable increase under capped market rent reviews.