Herbert Smith Freehills v Fitzwilliam Trustees Number 1 Ltd & Ano
| Jurisdiction | Northern Ireland |
| Judge | Huddleston J,Mr Spence |
| Judgment Date | 04 May 2023 |
| Neutral Citation | BT/36-38/2021 |
| Court | Lands Tribunal (Northern Ireland) |
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LANDS TRIBUNAL FOR NORTHERN IRELAND
LANDS TRIBUNAL AND COMPENSATION ACT (NORTHERN IRELAND) 1964
BUSINESS TENANCIES (NORTHERN IRELAND) ORDER 1996
IN THE MATTER OF AN APPLICATION
BT/36-38/2021
BETWEEN
HERBERT SMITH FREEHILLS LLP – APPLICANT
AND
FITZWILLIAM TRUSTEES NUMBER 1 LIMITED & FITZWILLIAM TRUSTEES NUMBER 2 LIMITED
AS TRUSTEES OF THE TULLYHAPPY PROPERTY UNIT TRUST – RESPONDENT
Re: The Cylinder Building, 3 Cromac Quay, The Gasworks, Belfast
Lands Tribunal – The Honourable Mr Justice Huddleston, President and
Henry Spence MRICS Dip Rating IRRV (Hons), Member
Background
1. The premises occupied by Herbert Smith Freehills LLP (“the applicant”) comprise part of the
building originally known as Plot 6, 3 Cromac Quay, Belfast and which is now known as the
Cylinder Building, 3 Cromac Quay, The Gasworks, Belfast.
2. The applicant occupies part of the ground floor and the entirety of the mezzanine floor and
second floor (“the reference property”). The remainder of the building is occupied by a
different tenant. Fitzwilliam Trustees Number 1 Limited and Fitzwilliam Trustees Number 2
Limited as Trustees of the Tullyhappy Property Unit Trust (“the respondent”) are the landlord
for the entire building.
3. The premises that constitute the reference property are held under three separate leases.
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4. The first lease is dated 16th December 2010 (“the 2010 lease”) between Belfast City Council
(1) Ormeau Gasworks Limited (“Ormeau”) (2) and the applicant (then known as Herbert Smith
LLP) (3). The 2010 lease demised the mezzanine and second floors on the south side of the
building for a term of 10 years from 16th December 2010.
5. On the same date as the 2010 lease, the applicant and Ormeau entered into an Agreement
for Works. Under this agreement the applicant carried out extensive fitting-out works to
convert the part of the reference property demised by the 2010 lease from “shell and core” to
a full Grade A Cat A office specification.
6. In or around 2013 the applicant decided to expand and incorporate the rest of the mezzanine
and second floors on the north side of the building. At that time Ormeau was in
administration.
7. By a lease dated 21st August 2013 (“the 2013 lease”) and made between Belfast City Council
(1) Ormeau (2) the applicant (3) and the administrators of Ormeau (4) the mezzanine and
second floors on the north side of the building were demised to the applicant for a term from
27th June 2013 to 15th December 2020, thus having the same expiry date as the 2020 lease.
8. On the same date the applicant and Ormeau, acting through its administrators, entered into
an Agreement for Works. At that time, the part of the reference property demised by the
2013 lease required to be upgraded from “shell and core” to a full Grade A Cat A office
specification. As Ormeau was in administration, it could not afford to carry out the works
required under the 2013 Agreement for Works. The applicant carried out and paid for all of
the works – i.e. those that one might normally associate with being the responsibility of the
landlord as well as those of the tenant. The document drew that distinction.
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