The case of Cordoba Holdings Ltd v Ballymore Properties Ltd [2011] EWHC 1636 (Ch) skirts around an issue on the interpretation of a rent review disregard of improvements, but never really gets off the ground, simply because the High Court decides that the issue being debated was never clearly put before the rent review arbitrator. That being the case, no point of law or irregularity had arisen in the arbitration to justify an appeal. The premises were used a data centre. They were only able to be used as such because of works the tenant had carried out, outside the demised property, to enable the premises to enjoy an enhanced power supply. If those works were to be disregarded, the premises would, for hypothetical rent review purposes, enjoy a lower power supply, enabling only a lower value office use of the premises. As mentioned, the point did not arise for determination. However, one suspects that a disregard of improvements to “the Premises” would not extend to enhancement works carried out outside the premises. For safety’s sake, a tenant who, with landlord’s consent, carries out enhancement works outside the extent of the demised property should expressly agree with the landlord that the effect of the works on value should be disregarded at rent review, regardless of what the lease says.
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