SA Supreme Court rules in favour of Victoria & Alfred Waterfront following appeal by Marcel Joubert and the Platinum Group

[Cape Town, 15 June 2004] - On 28 May 2004, the South African Supreme Court of Appeal ruled in favour of the Victoria and Alfred Waterfront

(Pty) Ltd, with a court order issued to Platinum Holdings (Pty) Ltd (representing the three clothing stores Jenni Button, Hilton Weiner and Aca

Joe) to vacate the Victoria Wharf Shopping Centre.

Says Derick van der Merwe, managing director of the Victoria & Alfred Waterfront (Pty) Ltd, "The court ruling reaffirms that a landlord's right must be respected. Property owners have a right to deal with property under their care in a way that they deem necessary, once a lease has expired. Both landlords and tenants are bound by the conditions within a lease agreement which has a definite commencement and expiry date,"

"Decisions to extend or discontinue leases are made entirely on the basis of producing the best possible tenant mix. The Waterfront extensively researches both consumer demands and retail trends worldwide and in South Africa to aid them in a decision which will affect its success," comments Van der Merwe.

In the case of the Platinum Group, prior to the expiry of its lease in March 2003, the tenant was asked to reduce the amount of floor space to make room for new stores. Part of the Waterfront's mandate is to regularly look at ways of refreshing the existing tenant mix to introduce new retailers and accommodate consumer demand for new products. Following extensive negotiations with the Platinum Group, the Waterfront was unable to come to a mutually satisfactory agreement, resulting in the matter being taken to court.

The basis of the Platinum Group's defence was that as a tenant, the Group enjoyed constitutional protection, based on the Competition Act, and could therefore not be made to vacate the premises after the expiration of the lease. The Supreme Court of Appeal found that there was no evidence to support the argument that the Platinum Group was being forced to vacate the premises by being charged exorbitant rentals.

The case was duly dismissed without referring the matter to the

Competition Tribunal.

"Illustrating the Waterfront's ability to maximise on its trading density, the company has already signed up six new stores to occupy the floor space until now utilised by the three Platinum Group stores,"

concludes Van der Merwe.

ENDS

For further information, please contact Maureen Thomson on 083 2755 091

Enid Vickers

Corporate Image

Tel: 021 426 1233

Mobile: 083 460 3910