Kebab shop tenant wants fairer compensation from the Hamilton Group to vacate Moorabool St premises

A number of Moorabool St businesses are due to close, as plans for a redevelopment of the former Bright and Hitchcocks building move forward.

Consultant Richard McDonnell is calling for fairer compensation for his client who is being forced to vacate the former Bright & Hitchcock building due to redevelopment. Picture: Mark Wilson

A Geelong kebab shop owner is calling for “fairer compensation” from a major local developer after being forced to vacate the building three years into a seven-year lease.

The Kebab Spot has been offered $15,000 by the Hamilton Group to vacate its shopfront at 119 Moorabool St by April 17.

The owner took over the lease and paid $380,000 for the business in March 2022.

The Hamilton Group is planning a $5m redevelopment of the former Bright and Hitchcocks building, with the project expected to include the construction of a new building and demolition and reconstruction of the existing building.

Once complete, the site will include a rooftop bar, office and retail spaces.

Plans for the project were submitted in August 2020.

Plans for the redevelopment of 115-145 Moorabool St by the Hamilton Group.

Richard McDonnell from McDonnell McPhee and Associates, who is representing Kebab Spot, said the owner received notice from the landlord in October last year that he would need to vacate the premise.

“Under the retail leases act, the landlord can do that but they have to pay the tenant reasonable compensation,” Mr McDonnell said.

He said the Hamilton Group offered a “rather measly sum” to his client during mediation at the Victorian Small Business Commission.

The initial compensation offer was rejected and Mr McDonnell said a further offer of $15,000 was made by the developer outside of mediation.

That sum was also rejected, he said.

“You can’t set this business up for $15,000,” Mr McDonnell said.

“That is not reasonable compensation.”

Mr McDonnell took the matter to the Victorian Civil and Administrative Tribunal (VCAT) in February this year.

“They can come back to use at any stage and make a reasonable offer,” he said.

Mr McDonnell said the new compensation figure needed to “have a few naughts behind it”.

The owner of the Kebab Spot is calling for fairer compensation after he was issued a notice that he needs to vacate the 119 Moorabool St premises due to redevelopment. Picture: Mark Wilson

The owner of Kebab Spot, who did not wish to be named, said he was told the lease would be terminated on May 17 this year even though it is only three years into a seven-year lease.

He said the compensation offered to him was “an insult”.

“I’m not against development, I want to see the area developed but in a fair way,” he said.

“When the whole thing started, I didn’t want to get lawyers involved.

“I first tried to talk to them but they weren’t willing to talk.”

The site of the redevelopment by the Hamilton Group. Picture: Mark Wilson

Managing director of the Hamilton Group, Cam Hamilton, said notice of the development was “clear” in the lease

“The landlord has always been prepared to pay reasonable compensation ... and endeavoured in good faith to negotiate a settlement at the Small Business Commission,” he said.

“At all times Hamilton Group has acted in accordance with the lease.

“It denies the tenant’s allegations and cannot comment further as the matter is the subject of legal proceedings at VCAT.”

A spokeswoman from 7/11 confirmed the convenience store located on the corner of Moorabool and Little Malop streets closed last Friday due to a “decision by the landlord regarding the future of the building”.

Originally published as Kebab shop tenant wants fairer compensation from the Hamilton Group to vacate Moorabool St premises