Melbourne restaurateur Nick Zampelis is seeking $7 million in damages from Crown after it unexpectedly did not renew leases to his two restaurants last year.
Mr Zampelis, owner of Cafe Grecco and Waterfront, had spent $7 million refurbishing both restaurants on the assumption that he would have 10 years to make a return on the investment. The Victorian Civil and Administrative Tribunal heard this week, however, that when the leases expired on 31 August and was not renewed, instantly wiping out the value of the two restaurants.
Mr Zampelis claims he was given verbal assurances by Crown’s senior management in 2005 that the businesses may remain in the Crown complex “for the long haul”, or specifically five years upon the expiration of the lease in 2010. Crown has hit back on this claim by revealing Mr Zampelis’ financial offer to former Crown leasing director David Boesley who was asked to give evidence in court. Mr Zampelis, who also has popular bars Silk Road and Negroni’s under his belt, continues the dispute against Crown before senior tribunal member Alan Vassie at the time of writing.
