Question

Michelle owns two adjacent blocks of Torrens Title land. One block is vacant while the other block has a warehouse on it. The warehouse is currently being leased by JingDong Networks Pty Ltd, a company that sets up light shows all over the world. It has a lettable area of 1,300sqm. JingDong Networks is currently 2 years into a 6 year lease with an option to renew for another 6 years. The lease is registered on Title.

Michelle decides to sell both blocks of land to her daughter Mellissa. Shortly after the sale is completed, JingDong Networks received Mellissa's permission to sub-let the warehouse for the remaining lease term. The sub-lessee is Success Fuse Pty Ltd, who manufactures and sells fireworks. As part of their work, Success Fuse must store fireworks on the property. In accordance with their fireworks licence, fireworks must not be stored near any building. Success Fuse stores the fireworks next to the vacant land as it is far enough away from the warehouse to comply with the licence requirements.

A year later, Success Fuse receives a letter stating that Mellissa wants to build a warehouse on the vacant land. The plans for the new warehouse indicate that it would be too close to the fireworks storage for Success Fuse to comply with their licence. Success Fuse approaches you for advice on what they can do. The representatives for Success Fuse are very upset and say that will refuse to pay rent if the new warehouse plans proceed.

Advise Success Fuse Pty Ltd on whether they could prevent Mellissa from building the new warehouse?