Lease woes drown opening hopes

Posted On Monday, 12 October 2009 02:00 Published by
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The opening of a popular PE' gastro-pub' has been derailed because of a bitter leasing feud between three prominent businessmen.

By Amy Shelver

The opening of a popular Port Elizabeth “gastro-pub” and live music venue at its newly renovated beachfront venue has been derailed because of a bitter leasing feud between three prominent Port Elizabeth businessmen.

At the centre of the dispute are property owner Dr Jaswantlal Narshai, controversial Irish businessman Ken Denton and Tapas al Sol owner Donovan Noyle.

Noyle said he had spent about R1-million upgrading Tapas’s new premises at the Humerail Centre on Beach Road.

But after months of protracted negotiations, agreements, litigation and opening dates passing without the re-launch, Noyle said he had been left “high and dry” by the other parties.

Transnet owns the land and the building in which the new Tapas was to have been situated, but the property is leased by Denton’s Ummi Properties, which in turn sublets that portion to Narshai’s Cowsta Beleggings.

On September 23, the day Tapas was meant to re-open, Noyle received a call from Denton to say a tentative agreement was off the table and they could not open. This followed a lengthy process of stalled negotiations and agreements.

In February a lease agreement was signed between Cowsta Beleggings and Tapas al Sol. At the time, Noyle says, he was unaware Narshai was under an obligation to obtain Ummi Properties’ consent for the sublet.

But Narshai’s lawyers say the consent clause was never invoked by Denton in the nine years preceding the agreement, despite numerous tenants being placed in their clients’ premises.

“It was...an oversight on the part of our client which arose as a result of the practice established prior to February 2009 between Cowsta and Ummi,” said lawyer Kent Williams.

Noyle said when renovations began Denton proceeded to “harass” him almost daily.

Narshai then decided to cancel the lease with Tapas and draw up a new one in an effort to secure Denton’s consent for the sublet. However, Denton launched an urgent High Court interdict against Cowsta and the Tapas opening.

Denton told Weekend Post he had taken this action because significant building construction had taken place on land “owned” by Ummi Properties without its consent and the necessary municipal planning permission.

But Noyle says municipal approval had been obtained for the deck. His architect, Steven van Wyk, confirmed he was in possession of the approved plans.

The High Court favoured Denton’s appeal on the basis of lack of parking.

Following the interdict, Noyle entered into “amicable negotiations” with Narshai and Denton. He said a resolution was eventually reached, in which it was agreed Denton would buy out Cowsta’s lease and Tapas would open in September to host the annual “Rocktober” event featuring prominent South African bands.

Noyle said Denton gave sponsors South African Breweries verbal confirmation Tapas would open on schedule. Denton, however, refused to comment on this.

Noyle said Denton called him out of the blue on September 23 to say the agreement was off.

“We got dealt a low blow.”

He then approached the Boardwalk to take over hosting of the month-long Rocktober.

Noyle is now suing Narshai’s company for damages. It was agreed Tapas would vacate the premises yesterday.

“Cowsta are in the process of verifying the value of the improvements...and shall be compensating them,” Williams confirmed.

“Our client has exhausted every possible avenue to secure Tapas’s continued occupation of the premises, but ultimately, this decision lay in the hands of Mr Denton.”

Cowsta’s letting agent, Kevin Slattery, said the disputed property would probably be re-let to an upmarket restaurant.

Source: The Herald


Publisher: I-Net Bridge
Source: I-Net Bridge

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