The new owners of Jandakot Airport are in dispute with tenants just a month after taking possession, with an independent review recommending rental increases in some cases of more than 100 per cent.
Ascot Capital paid $43.5 million for the 662-hectare site, approximately 160ha of which the company plans to develop into a major commercial, light industrial and retail precinct to service Perth’s rapidly growing southern suburbs.
Ascot Capital director David van der Walt said the leases signed by tenants contained rent reviews, which had been undertaken by an independent third party. The recommen-dation, in most cases, was to increase rents.
“We are looking at all the leases and will try to accommodate all tenants,” Mr van der Walt said.
“We will be very sympathetic to people who can’t afford the market reviews, and don’t want anyone to go out of business; we won’t be putting rents up by over 100 per cent.
“We have told tenants what the market is saying and we are open to discussion regarding that. We are not going to put rents up ridiculously; the market has escalated rapidly, though, and we are looking at the rents.”
It is understood the Jandakot Airport Chamber of Commerce is undertaking a survey of tenants to ascertain the extent of rent increases.
One tenant contacted by WA Business News said they believed Ascot was “trying it on” with some tenants, and that once the problem had been quantified, tenants would work out their legal rights and make sure valuations were in keeping with market rents.
Ascot bought Jandakot Airport, one of the nation’s busiest air traffic areas, earlier this year from interests associated with bankrupt earth-moving mogul Kevin Pollock.
Subsequently, the federal government approved a fourth runway at Jandakot Airport and cleared the path for a proposal to develop about 150ha of surrounding non-aviation land.
