Department store owner Myer has been slapped with a pre-Christmas court action by the billionaire property magnate that has half-ownership in Chadstone Shopping Centre, John Gandel.
The writ has been filed in the Supreme Court of Victoria as shoppers pour into one of the most popular shopping centres in Australia to complete their Christmas shopping.
Chadstone unveiling one month away
Massive, shiny new redevelopment will make Chadstone the largest shopping centre in Australia, with 600 retailers across more than 200,000 square metres â roughly equal to 10 MCG pitches.
The legal action was taken by Mr Gandel's company Bridgehead and Perpetual, which is the trustee for Vicinity Centres, which owns the other half of Chadstone.
It pits one of Australia's best known retail brands against two of the largest, best funded landlords in Australia – Mr Gandel and ASX-listed shopping centre owner Vicinity Centres.
Mr Gandel is Australia's fifth-richest person according to the BRW Rich List, with a wealth estimated at $5.4 billion through his ownership of property including his half stake in Chadstone.
He bought into Chadstone more than 30 years ago after the sale of his interest in clothing group Sussan to the Besen family.
Bridgehead and Perpetual are seeking $19.4 million plus GST as well as interest and costs in the Supreme Court of Victoria.
The dispute centres on the lease for the Myer store at Chadstone that has been drafted up between the co-owner of the centre, Mr Gandel's private entity Bridgehead and ASX-listed shopping centre owner Vicinity Centres.
"The landlords allege that there was a mutual mistake in the drafting of the variable outgoings and provisions in the lease for the Myer Chadstone store or that those provisions have been misinterpreted," Myer said in an announcement to the Australian Securities Exchange on Friday.
Myer said the landlords were seeking rectification of the lease and payment. The landlords are also seeking allegedly unpaid outgoings over a 16-year period between 2001 and 2016.
"Myer believes the claim has no proper basis, denies any liability under it and will vigorously defend it," Myer said.
The filing comes after a patchy year for Myer that saw short sellers pile into the stock over concerns about its $600 million rejuvenation program aimed at refurbishing tired stores and improving online and digital capabilities.
However, Myer posted sales figures for the October quarter, with same-store sales up 1.6 per cent.
Earlier this year, the co-owners of Chadstone unveiled the first stage of a $600 million-plus expansion of the centre, which included more than 60 new shops and cinema complex.
Chadstone attracts about 20 million Australian and international visitors annually.