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VCAT Orders Abbotsford Convent to Return Control of Restaurant Amid Tenant Disputes

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VCAT Orders Abbotsford Convent Foundation to Return Control of Kappaya Restaurant

The Victorian Civil and Administrative Tribunal (VCAT) has ordered the Abbotsford Convent Foundation to restore access to Kappaya Japanese restaurant for its operator, Joe Shin, following an eviction dispute. The foundation is also facing a separate dispute with another tenant, the Convent Bakery, which Shin also operates. These legal battles come as the foundation confronts a reduction in state government funding.

Key Timeline

  • May 1, 2026: The Abbotsford Convent Foundation repossessed the Kappaya Japanese restaurant premises, changing the locks and stationing security guards to prevent re-entry. The foundation cited unremedied defaults for the repossession.

  • May 18, 2026: VCAT Deputy President Richard Wilson and Senior Member Holly Nash ruled in favor of Shin's urgent application, ordering the foundation to restore Shin's access to the premises by 11am on May 19.

  • Pending: The case is scheduled for mediation next month. A planning tribunal hearing for the Convent Bakery is set for the end of May.

Dispute Details

The foundation has issued a termination notice to the Convent Bakery. Shin alleges unlawful eviction from Kappaya and argues that his leases should have been extended under Victorian COVID-19 commercial tenancy regulations. The foundation states that the repossession of Kappaya was lawful, that the decision to terminate the lease reflected compliance and long-term planning, and that it has not extended the bakery's lease.

"There was a serious issue to be tried on whether a dispute over outdoor furniture was legally sufficient to terminate the lease." — VCAT Deputy President Richard Wilson

The dispute over Kappaya initially involved issues regarding outdoor furniture and Shin's liquor license. Shin has stated that these issues were pretextual.

Operational Impact

Shin reported that approximately one week's worth of food was trapped inside the restaurant following the eviction, and five staff members were let go. He stated an intention to rehire those staff members.

Organizational Context

The Abbotsford Convent is a 6.4-hectare site in Melbourne that was saved from redevelopment in the 1990s. The foundation's revenue for the last financial year was reported as $5.2 million, comprising $1.1 million from parking and $2.5 million from tenancies.

Creative Victoria funding of $800,000 is ending. The foundation has stated it is repositioning the site as a tourist destination in response.

According to the foundation, it is in discussions with the non-profit organization All Things Equal, which may open a hospitality business at the convent.

Staff and Legal Matters

Staff departures from the foundation include the chief operating officer, finance manager, accounting manager, marketing manager, and a tenancy manager on extended leave.

The foundation previously lost a tender to run the Collingwood Children's Farm. The foundation also opposed a four-story retirement village development on the convent's border.

Statements

Joe Shin (restaurateur): Claimed that the foundation's use of multiple lawyers and a barrister was an inappropriate use of charity funds.

Abbotsford Convent Foundation spokesperson: Stated that the foundation would engage constructively with the tenant.

Yarra Mayor Stephen Jolly: Described the tribunal decision as symbolic of a perceived drift from the convent's radical roots, calling it a "wake-up call" for leadership.

The Convent Bakery launched a petition that gathered 1,400 signatures.