Business lease renewal and break clauses

Davy’s of London (Wine Merchants) Ltd v The City of London and Saxon Land BV [2004] EWHC 2224 (Ch)

Also in our August edition (18 Commercial Leases 877) we highlighted the case of Mayor & City of London v Davy’s of London (Wine Merchants) Ltd [2004] EGCS 117. Readers will recall that Davy’s as tenant sought a renewal tenancy, under the Landlord and Tenant Act 1954, of basement and ground floor premises at 120 Fenchurch Street in the City of London. The City did not oppose in principal, since it had not served a counter-notice in response to Davy’s s26 request for a renewal tenancy, but argued that there was a prospect for redevelopment and that the renewal lease should contain a redevelopment break clause. In evidence the City said that it did not wish to carry out the development itself, but proposed a sale of the land to Coronation Land, which was assembling properties for a comprehensive development of an island site of which 120 Fenchurch Street was just a part.