Abbotsford Convent Foundation Faces Mounting Challenges

The Abbotsford Convent Foundation is navigating a series of complex challenges, including financial losses, governance upheaval, and a legal dispute with a long-term tenant. The Victorian Civil and Administrative Tribunal (VCAT) recently ordered the foundation to return control of a restaurant to its operator following a contested eviction.

Tenant Dispute and Legal Proceedings

Eviction and VCAT Ruling

On May 1, 2026, the Abbotsford Convent Foundation evicted Joe Shin, operator of Kappaya Japanese restaurant, by changing the locks and posting security guards to prevent re-entry. Shin has operated the restaurant since 2016.

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

The case is scheduled for mediation in June. VCAT noted there was a "serious issue to be tried" regarding whether a dispute over outdoor furniture was legally sufficient to terminate the lease.

Background of the Dispute

The eviction stemmed from disagreements over outdoor furniture and Shin's liquor license. Shin argued these issues were pretextual, asserting that his lease should have been extended under Victorian COVID-19 commercial tenancy regulations.

The foundation stated the decision to terminate the lease reflected compliance and long-term planning, and said it would engage constructively with the tenant.

Impact on Operations

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

Convent Bakery Situation

Shin also operates the Convent Bakery, which he has run since 2018. The foundation issued a termination notice for that tenancy but subsequently withdrew from a second VCAT hearing regarding the bakery lease.

Prospective Tenant

The foundation is in discussions with the non-profit organization All Things Equal about opening a hospitality business at the convent. During the dispute, it emerged that foundation managers conducted a covert inspection of the bakery with a representative from All Things Equal in 2025. The foundation acknowledged the inspection could have been handled more transparently.

Community Petition

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

Financial Situation

The foundation reported a loss of $690,000 in the last financial year, marking its sixth consecutive annual loss totaling almost $4 million. The precinct last recorded a break-even result in 2019.

Revenue Sources

In the last financial year, the foundation reported total revenue of $5.2 million, including:

• $2.5 million from tenancies (130 tenancies generated $2.4 million)
• $1.1 million from parking operations
• $800,000 in state government funding from Creative Victoria

The Creative Victoria funding is ending, prompting the foundation to reposition the site as a tourist destination. Emergency pandemic-era state funding has also concluded, and a renewal of $200,000 in annual funding was not achieved.

Staffing

The foundation has 26 full-time staff. Recent staff departures include the Chief Operating Officer, finance manager, accounting manager, marketing manager, and a tenancy manager who is on extended leave.

Governance Changes

In May 2025, board chair Gillian Franklin resigned, along with directors Bridgid Cowling and Paul Bowers. The foundation stated the departures were orderly and part of a planned transition. An acting chair is in place, but no successor has been named. Franklin stated her resignation was not linked to the convent's problems.

Board Composition

The Yarra Residents Collective has raised questions about the foundation's corporate approach and the appropriateness of having board members who live interstate.

Director Justin Blumfield, a former Essendon premiership footballer and commercial property executive, relocated from Melbourne to Queensland and attends meetings via Zoom.

The foundation stated that he brings valuable experience.

Site History and Context

The Abbotsford Convent is a 6.4-hectare site in Melbourne. The Convent of the Good Shepherd was established on the site in 1863. In the early 2000s, a community campaign opposed residential development of the site, and the Bracks government secured public ownership. The precinct was intended to be financially self-sufficient.

Other Developments

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

Statements from Parties Involved

• Joe Shin: Claimed that the foundation's use of multiple lawyers and a barrister was an inappropriate use of charity funds. He argued the dispute over outdoor furniture was an excuse to drive him out.

• Abbotsford Convent Foundation spokesperson: Stated that the decision to terminate the lease reflected compliance and long-term planning, and that the foundation would engage constructively with the tenant.

• Yarra Mayor Stephen Jolly: Described the VCAT decision as symbolic of a perceived drift from the convent's original community-oriented mission.