De Vere Group plc is facing a High Court claim for insurance that is owing on the lease of its Croydon gym.
Landlord National Mutual Life Assurance Society claims that the leisure group owes more than £60,000 in respect of unit 1, The Colonnades, in Purley Way, which the company operates as a Greens Health and Fitness Club.
De Vere allegedly took a 25-year lease of the premises in December 1999, at an initial rent of £458,000 pa.
According to the claim, between December 2003 and February 2004, National Mutual’s agent, Nelson Bakewell, issued De Vere with invoices for £32,157.76 and £100,164.85 for insurance rent payable in respect of the premises.
However, National Mutual maintains that De Vere still owes £64,449.89 for building and terrorism insurance, together with interest of £2,475.22.
The landlord claims that it is entitled to charge De Vere a “fair and reasonable proportion” of the costs that it incurs in respect of building insurance, insurance against loss of rents, property owner’s liability, and “such other insurance as it from time to time deems necessary”.
De Vere, previously operating as Greenall Group plc, presently controls 35 hotels and 48 health and fitness clubs, of which 15 are run under the trade name Greens.
National Mutual Life Assurance Society v De Vere Group plc Queen’s Bench Division
Claim Number: HQ04X01548
Claim Date: 21 May 2004
Issued By: Maxwell Batley
References: EGi Legal News 07/07/04
