Property firm Miramar Property Partners is taking food vendor Tao Cafe to the Supreme Court for allegedly breaking a $2.9 million lease agreement.
Property firm Miramar Property Partners is taking restaurant chain Tao Group to court for allegedly breaking a $2.9 million lease agreement and failing to vacate the premises.
In May 2015, the company entered into a lease agreement with Tao Cafe for a shop front at Subiaco Square at a cost of $220,000 per annum.
That lease was not due to end until 2028 and included a fee to utilise the alfresco area and its share of the centre’s operating expenses.
But from July 2019 until January 2020, the plaintiff alleges that the company failed to pay its rent - prompting the property owner to issue a notice of default.
Despite attempts by the plaintiff to negotiate a variation to the terms of the lease agreement, Tao Cafe allegedly refused.
The company issued a second default notice in April last year before officially terminating the lease in June.
But the plaintiff alleges that Tao Cafe failed to comply and then refused to vacate the premises.
A letter of demand was issued on December 23 last year.
The company’s Subiaco store is now listed as permanently closed, but the organisation still has seven operational venues in the Perth metropolitan area and Peel region.
This week, Miramar Property Partners filed a case against both Tao Group and its director Myyen Noble in the Supreme Court of Western Australia claiming damages in the order of $2.9 million, the total cost of the duration of the lease plus interest.