Tesco Holdings Ltd v Jackson and another

Tesco Holdings Ltd v Jackson and another - 1990 - Estates Gazette (1990) 10 EG 71-75(3) .

ChD 28 April 1989. Application by the tenant (T) under Arbitration Act 1979 s2(3)(b) to appeal against the award of an arbitrator in respect of the operation of a rent review clause in a lease made on 16 April 1973 between T and the predecessors in title to the landlord (J). The demise was an area of 4.75 acres for a 125 year term with an upward rent review every 14 years, the initial rent being £9,000 pa. By clause 6 of the lease the reviewed rent was to be the higher of the initial rent or the open market rental value , the valuation to be based on the lease of the site only not the buildings which T had erected. The award from the arbitrator, dated 1 December 1988, reviewed the rent at £184,448 pa. T claimed it should be £68,000. Question arose as to the validity of the arbitrators sum. There were no direct comparables for ascertaining the rent of the site on which the supermarket stood. J`s surveyor produced evidence of the capital value of freehold sites which he adjusted to fin