Bewley’s rent review ruling appealed

A legal battle over a rent review between coffee group Bewley’s and its landlord has come before the Supreme Court.

At issue is the interpretation of a lease and the rent on Bewley’s cafe in Grafton St, Dublin, which was set several years ago with built-in five-year reviews, and currently stands at €1.4m.

Last year, the High Court ruled the €1.4m annual rent being paid by Bewley’s for its iconic Grafton St premises must now fall to the market rate. The move would see the rent almost halved.

The company which owns the premises, Ickendel Ltd, has appealed that decision to the Supreme Court.

Ickendel is owned by Johnny Ronan through Treasury Holdings, which has had its loans transferred to Nama.

Yesterday a five-judge Supreme Court reserved its decision on the appeal after hearing oral submissions.

Rent on the building, traditionally known as Bewley’s Oriental Cafe, has gone from €213,000 in 1987 when the lease was first signed to €1.46m in 2007.

Hugh O’Neill, counsel for Ickendel, said in the Celtic Tiger days, landlords also lost out because their rents remained static for five years. In the Celtic Tiger era, he said non review rents increased by 50%. His side contended that when the Bewley’s rent came for review in 2012, it was to relate back to the year ending 2011 and not the initial rent as Bewley’s put forward.

Gavin Ralston, for Bewley’s, said a clause dealing with subletting in the lease says rent shall be upwards only. Counsel asked why then does the lease not say it in relation to the Bewley’s part of the rent. He said the court will have to decide on the meaning of the lease.