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The way warehouses were

By: Language: English Series: Property Week ; 73(5) 1 February 2008, 89(1)Publication details: 2008Subject(s): Summary: Discusses McDonalds Real Estate v Arundel Corp, 16 January 2008. The case shows the potential problems invloved in drafting rent review clauses based on hypothetical lettings. In 1986, McDonalds took out a fifty year lease on an old factory with a view to converting it into a drive-through. The lease provided the building to be treated as a warehouse with 15% office space at rent review. The Court had to decide what sort of warehouse was intended. The landlord argued that warehouse could include retail warehouses, which generate a significantly higher rent than storage warehouses. Held: a storage warehouse had been intended, but there was no restriction on the usage of the word. The landlord may seek to have the building's retail value reflected in the rent review.
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Journal article London Journal article L142347 (Browse shelf(Opens below)) 1 Available 142347-1001

Discusses McDonalds Real Estate v Arundel Corp, 16 January 2008. The case shows the potential problems invloved in drafting rent review clauses based on hypothetical lettings. In 1986, McDonalds took out a fifty year lease on an old factory with a view to converting it into a drive-through. The lease provided the building to be treated as a warehouse with 15% office space at rent review. The Court had to decide what sort of warehouse was intended. The landlord argued that warehouse could include retail warehouses, which generate a significantly higher rent than storage warehouses. Held: a storage warehouse had been intended, but there was no restriction on the usage of the word. The landlord may seek to have the building's retail value reflected in the rent review.