New Zealand Mint's building at 48 Greys Avenue, central Auckland.
New Zealand Mint's building at 48 Greys Avenue, central Auckland.
New Zealand Mint has stopped its landlord from making moves to cancel the lease on its central Auckland building.
Based on Greys Ave in the city, the coin minter and bullion dealer made alterations to its reception last year and began minor work on storage areas in its basement in May.
That month NZ Mint's landlord noticed building materials being delivered to the site and wrote to the firm indicating a fear of a possible breach of the lease agreement.
The landlord then issued a Property Law Act notice claiming NZ Mint was in default under the lease as it had made alterations and additions to the premises without consent.
NZ Mint's lawyers responded by saying the works were minor and confirmed the tenant would reinstate alterations and additions at the end of the lease.
They later sought an assurance that the landlord, Greys Avenue Investment, would not take any cancellation or repossession action under the notice.
When this wasn't received, NZ Mint applied to the High Court at Auckland seeking relief against any proposed cancellation of its lease on the basis of an alleged breach.
The basement work did not factor into this application because NZ Mint had returned that part of the premises to its original state by the time the matter went before a judge.
Considering the issue, Justice Matthew Muir did not think the work to the reception triggered the alteration clause in the lease.
NZ Mint chief executive Simon Harding
Even if he was wrong, the judge said he would have granted NZ Mint's application on the basis that termination of the lease would be disproportionate to the alleged breach.
Referring to an affidavit from NZ Mint chief executive Simon Harding, Justice Muir said the premises contained "many millions of dollars worth of bullion, precious metals and other valuables all of which is stored in specialist vault facilities with high-security features".
"The company simply cannot operate its business other than from a purpose-built premises."
He went on to say that the additional security offered by the remodelled reception was likely to have added to the building's value rather than detracted from it.
He granted relief to NZ Mint against any proposed cancellation of the lease on the basis of the alleged breach and awarded it court costs.
A separate dispute is underway between NZ Mint and Greys Avenue Investment over a demand by NZ Mint for funds and Justice Muir said the Property Law Act notice could have been an attempt by the landlord to get leverage in those claims.
"I do not consider [Greys Avenue Investment] to have acted reasonably in that regard," the judge said.
