Springwood Mall discount store wins payout for renovation delays

A southside shopping centre tenant has been awarded $5500 after a tribunal found the landlord misled them about the completion date of a $16 million redevelopment project.

11,000 cubic metres of earth was removed from the site during the construction. Picture: Springwood Mall Facebook page from September 20, 2021.

A southside shopping centre landlord has been ordered to pay $5500 in compensation after a tribunal found it misled a tenant about the completion date of a $16 million redevelopment project at Springwood Mall.

The Queensland Civil and Administrative Tribunal ruled that Chin Hong Investments Corporation Pty Ltd, acting as trustee for the centre, gave incorrect information to its tenant, which operates a discount retail store in the mall.

The redevelopment, launched in 2022, aimed to modernise the centre with upgraded retail space, new amenities, expanded Woolworths and Target stores, a 5000 sqm car park, and an alfresco dining precinct.

However, delays in the project’s completion led to disruptions for the tenant, who signed a lease in March 2022 for a 668 sqm space at an annual rent of $133,600 plus GST with the store opening the following month.

The newly branded Springwood Mall offers outdoor dining. Picture: Facebook

During a site visit on January 24, 2022, the landlord’s agent told the tenant the works would be finished by mid-2022.

Construction continued until December, which the tribunal found had affected customer access and foot traffic.

The tenant sought compensation for lost income and damages, arguing that the misleading statements influenced the decision to lease the premises.

Concerns were also raised over the promised access to the new Woolworths entrance and claims about future tenants, including Boost Juice and Zarraffa’s Coffee.

QCAT Member Noel Jensen, alongside Members Jon Norling and Neil Judge, found that the landlord’s agent had been misleading about the redevelopment timeline and that played a part in the tenant’s leasing decision.

The tribunal acknowledged the impact of the delayed works, but dismissed the tenant’s broader claims, including a full six-month rent refund and public disclosure of the landlord’s conduct.

It noted that the landlord had already granted rent relief of nearly $39,000 between May and November 2022, which was deemed reasonable compensation for the disruption.

QCAT awarded an additional $5500 to the tenant, citing the ongoing impact of the delays and legal costs incurred during the dispute.

However, the tribunal accepted the landlord agent’s testimony as credible and gave weight to a signed letter of offer from the tenant dated February 2, 2022, which explicitly stated that no reliance had been placed on verbal promises.

Construction works at the Springwood Mall in March 2022. Picture: Facebook Springwood Mall

“We place significant weight on this acknowledgment of no representations,” the tribunal said.

The only misrepresentation upheld was a marketing email indicating the redevelopment would be finished by mid-2022.

Although the tribunal accepted this was provided in good faith, it found that the delay breached the Retail Shop Leases Act 1994, which requires landlords to provide accurate and truthful information during lease negotiations.

Chin Hong Investments Corporation Pty Ltd, headquartered in Eight Mile Plains and established in 1999, manages several commercial properties in addition to Springwood Mall.

It also owns Inala Plaza, acquired in 2019 for more than $56 million, and Park Ridge Town Centre, purchased in 2023 for $86 million.

Springwood Mall officially marked the completion of its redevelopment in August 2023 with a two-day celebration featuring entertainment and giveaways valued at over $20,000.

New tenants now include BWS, Bargain Central, and a Medical Centre.