Popular CBD pub The Austral is at risk of closure as a bitter legal dispute with it’s landlord over rent ensues

A popular pub in Adelaide’s CBD faces possible closure over a $100k dispute with its landlord.

One of Adelaide’s most popular pubs faces potential closure as it faces a bitter legal row with its landlord over a lease dispute worth $100,000.

Cousins Brettski Stewart and Ian Stewart renovated the Adelaide institution in 2020 after signing a five-year term with “rights of renewal” with Austral Properties.

Now, four years later, the duo has instigated legal proceedings against their landlord after they found they were at risk of being kicked out.

Legal documents filed with the District Court claim the hotel owners sent a notice of renewal, in the required period of time, but the landlord says they never received it.

The landlord also claimed they were owed $87,158.41 for a period of time – but it was paid at a later date.

Ian Stewart said they had no intention of not renewing the lease after “making a lot of investment in it”.

“To leave after two years would be ludicrous,” he told The Advertiser. “We want to make further investment.”

Mr Stewart said he has “no hard feelings” toward Austral Properties, rather, he believes there has been a miscommunication from their property manager, forcing them to go to court.

“The property manager and their method of communication,” is what he believes to be the issue.

Co-owner Brettski Stewart, who also ran and operated Lotus Lounge, at The Austral during renovations in 2020. Picture: Tom Huntley

Court documents allege Mr Stewart and his cousin sent a letter dated March 15, 2023 to renew the lease.

“The applicant alleges that by a letter dated 15 March 2023, the applicant exercised its right of renewal within the time required by the lease,” it reads.

“The respondent denies that the applicant has exercised its right of renewal.”

The documents show that the pub operators wish for the landlord to acknowledge their lease up and until December 3, 2028.

Further documents, filed by Austral Properties, claim the applicant does not have a right to occupy the property due to their failure to send a notice of renewal.

The document continues to allege the tenants did “not comply with the express terms of the agreement” and did not send a letter of renewal in the required time frame, to the required address.

“On 21 June 2023, the property agent of the respondent emailed the applicant informing it that the period to exercise its right to renew had lapsed and that no notice had been received within the time frame,” it reads.

“The applicant responded on the same day by email …, to the property manager agent of the respondent, claiming that an alleged notice was ‘sent to your office in early March’ and later in the same email communication it was said the alleged notice was sent ‘in or around 9 March 2023.

The Austral Hotel.

“No notice dated 9 March 2023, has ever been provided to the respondent, its solicitors, or its property manager agent.”

The document continues to state the request for a renewal notice on June 29, 2023 and July 7, 2023 – with a notice not being received either time.

“On 10 July 2023, by email the applicant sent a scanner version of what was alleged to be the copy of the ‘original renewal notice’,” it reads.

In court documents, filed by Austral Properties, it says they are of the position the letter was not created until after March 9, 2023.

It is further alleged in the documents the hotel was in breach of the lease prior to August 2022, owing a sum of $87,158.41.

The sum was later paid on June 29, 2022, with Austral Properties demanding on August 9, 2022 the hotel provide “a further or replacement bank guarantee”.

The document continues to allege the owners failed to provide a lease renewal notice at this time as well.

“A copy of the said notice was not provided,” it reads.

The document also states that mailing the letter to the property manager agent “is not proper service of notice in compliance with the lease.

Mr Stewart said they have never had any intention of not renewing the lease, with the hope of occupying the property for at least 30 years.

“We’re just wanting to get on with business,” he said. “We want to get the second and third floor renovated.”

In 2020, the cousins pumped up to $400,000 into the hotel to create new spaces for live music, DJs, functions and bars.

Austral Properties has been contacted for comment.