The Supreme Court has this morning upheld the appeal by the landlord against the High Court decision in Ickendel Limited v Bewley's Cafés (Grafton Street) Limited. In an unanimous decision read out by Judge Mary Laffoy the Supreme Court has decided that the rent review clause in the lease of the iconic Grafton Street property is effective to operate as an upwards only rent review.
The High Court decision had caused significant uncertainty as to the efficacy of upwards only rent review clauses generally in leases granted before March 2010. While Judge Laffoy stressed the decision was based on the particular facts of the case and not intended to be of general application, the Supreme Court judgment will be greeted with relief by NAMA and all landlords and investors. It is likely to act as a further stimulus to international and domestic investor interest in Ireland’s recovering commercial property sector