VICTOR HARBOR - Target Australia has launched legal action against the owners of Victor Central Shopping Centre, in an attempt to prevent a lease agreement with Big W going ahead.
Work on the $18 million expansion of the centre has been put on hold by the owners, Victor Harbor Property Investments, while the matter is resolved.
The re-development of the centre was announced last February, with the space for specialty shops to be increased by 1751m2 and a space of 5200m2 added for a discount department store.
An extra 338 car park spaces are also planned, bringing the centre's total to 850.
A director of Victor Harbor Property Investments, Harry Perks, said that no major work would go ahead at the centre until the case had been sorted out.
He said that the company did not want to commence expensive works that may then need to be altered.
However, work on the car parks on Hill Street would continue.
Target (which currently leases 1501m2 of floor space) lodged documents with the Supreme Court in March, after being told of the lease agreement with Big W.
In a Statement of Claim presented to the court, Target Australia said that, under the terms of their lease, they were entitled to be made a formal, written offer to lease any premises "suitable for a department or discount department store" that would be created by a new development.
Target claims a letter sent to it in March 2006 by the owners did not comply with this requirement as it did not "comprise the full terms of an agreement for a lease of the proposed premises".
They also claim that the proposed new premise was offered to Big W on terms "more favourable" than those offered to Target Australia.
Target has also alleged that it will suffer loss of revenue and profitability if a Big W store opens in the centre and that it has lost the opportunity to increase its earnings from opening a store in the proposed premises.
Additionally, Target also claims the development will alter the location and configuration of the car parking at the centre to favour the proposed premises over its current store and reduce the mall or passageway leading to the store.
Target has asked the Court to declare the initial offer to lease the space invalid and restrain the centre's owners from proceeding with the Big W lease and work on the development. They have also asked for damages, interest and costs relating to the alleged breaches of its lease.
The matter is due for argument in the Supreme Court on May 29.