$419k in unpaid rent: Canberra agent’s businesses thrown into eviction

Last month, the ACT Magistrate’s Court ordered Morella’s Canberra Strata and Canberra Commercial businesses to vacate a Kingston office building after finding they hadn’t paid rent for an extended period of time.

The arrears were discovered after the building’s owner, Castelfelice Investments, defaulted on its bank loan.

In November 2024, the bank appointed receivers to take control of the building with the intent of selling the property.

The receivers issued formal notices to both companies in September 2025, listing arrears of $238,029.47 for Canberra Strata and $181,234.68 for Canberra Commercial, warning that the leases could be terminated.

After the businesses failed to comply with their respective orders, the receivers served termination notices to both companies in October 2025.

While neither sought to contest the termination in court, Canberra Strata wrote to the receivers later that month, denying that it owed any rent.

Meanwhile, liquidators appointed for Canberra Commercial, which had entered administration, agreed to terminate its lease.

According to the court, a private investigator attended the property in November 2025 and reported that Canberra Strata occupied Units 3 and 4.

At a September 2026 hearing, the ACT Magistrate’s Court confirmed that both leases had terminated and ordered the companies to vacate.

Magistrate Ian Temby also authorised sheriff’s officers to remove occupants if the premises had not been vacated after at least two days’ notice.

In addition, he ordered Canberra Strata to pay Castelfelice Investments’ legal costs, finding that the business unnecessarily increased the costs of the proceedings through its approach and “delayed the inevitable”.

“It was inevitable that I would conclude that it was reasonable to terminate Canberra Strata’s lease,” he said.