High country runholders holding leases with rentals assessed under the Public Bodies Leases Act now diversifying into homestays and trekking face increased rent assessments following a landmark High Court case ruling that ‘amenity values’ are relevant in fixing annual rents.
Intangible benefits to land such as topography, scenic views and the pleasures of solitude are all considered amenity values.
This ruling followed a rent dispute running since 2009 between Canterbury University and banker John Shrimpton over rent renewals for Lake Coleridge’s Glenthorne Station.
Nearly one third of the 25,000 hectare station is held on a perpetually renewable lease from Canterbury University, part of the University’s nineteenth century endowment of surplus land then unwanted by colonial settlers.
The High Court confirmed an arbitration award fixing annual rent for the disputed lease at $32,000 running for eleven years from 2009.
A further rent review was required in 2020.
Glenthorne Station claimed rentals should be assessed as if a statutory trust created by 1876 colonial legislation should apply, resulting in annual rentals some one-quarter less than the arbitrators’ assessment.
Justice Mander ruled carry-over rules from this 1876 legislation applied only to runholders holding leases at that time. Subsequent purchasers, such as Mr Shrimpton, do not benefit from this concession.
Annual rents are to be fixed using rules in the Public Bodies Leases Act, he ruled. This includes an assessment of ‘amenity values’ attaching to the land.
Glenthorne Station Ltd v. Canterbury University – High Court (13.08.26)
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