Owners of The Austral hotel ordered to submit amended claim over rent dispute with landlord

A legal dispute over rent between the owners of a popular CBD pub and their landlord has hit court amid an argument over a $100,000 lease.

The Austral Hotel in Rundle St.

The owners of the Austral Hotel have been ordered to submit an amended statement of claim as a bitter dispute over their lease with their landlord hits court.

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 over the $100,000 lease after they found they were at risk of being kicked out.

Presiding in the District Court on Friday, Auxiliary Judge Wayne Chivell ruled the hotel owners “provide a further revised statement of claim” by close of business on August 7.

“Unless the respondent notifies any objection to that further revised statement of claim, applicant has leave to file by close of business on Friday, August 9,” Judge Chivell said.

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

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

Co-owner Brettski Stewart at The Austral during renovations in 2020. Picture: Tom Huntley

The documents further show the pub operators wish for the landlord to acknowledge their lease up and until December 3, 2028. They also claim the hotel owners sent a notice of renewal, in the required period of time, but the landlord says they never received it and alleged they were owed $87,158.41 for a period of time – but it was paid at a later date.

Mr Stewart told the Advertiser in May 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.”

“To leave after two years would be ludicrous. We want to make further investment.”

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

The claim is set to return to court at a later date.

Originally published as Owners of The Austral hotel ordered to submit amended claim over rent dispute with landlord