Squabble erupts over spot in prime CBD trading area
A PRIME trading spot located in the Durban CBD has become the centre of a legal dispute between a businessman and the landlord – with neither one willing to surrender.
Businessman Sipho Magwaza claims that his landlord, Jonathan Friedman, who owns Sumgeni Pty Ltd, has denied him access to the premises he has rented on Dr Pixley Ka Seme Street.
Magwaza rented the premises in 2016 to open a restaurant and sports bar. He signed a 10-year lease agreement and paid a deposit and rent of about R300000.
Magwaza claims his problems began when he took occupation in July 2016, only to find there was no ventilation and air conditioning had to be installed in the basement.
Magwaza and Friedman allegedly agreed that he would only pay rent once he began operating his business.
However, when he went to check on the renovations the following year, he found the space had been leased to another tenant.
Magwaza took the matter to the Durban Magistrate’s Court to apply for an interim order and the court ruled that he should not be prevented from occupying the premises. But Friedman launched a rescission of the order, which was granted but stayed pending the outcome of the application.
But when Magwaza went to the business premises he allegedly found it was leased to a Chinese-owned business and he was arrested and thrown into jail for trespassing and malicious damage to property.
Friedman is now appealing the order.
Magwaza said although he had suffered financial losses from the dispute, giving up was not an option.
“This is a prime spot, every businessman wants to trade in West Street (Pixley kaseme) because there’s traffic,” he said. “Most of these buildings are owned by non-black people and they lease them out to a few connected businesses. The CBD, it seems, is reserved for non-black businesses.”
The managing director for Urban Lime, the property agent that manages Sumgeni Pty Ltd, Nad Shahid, denied the discrimination allegation levelled by Magwaza.
“To insinuate that Urban Lime discriminates against black-owned business is simply farcical. Immediately after taking occupation, Magwaza defaulted on his rental payments and absconded from the premises. After some months of the premises standing vacant, the landlord began court proceedings against Magwaza and cancelled the lease. The premises were then leased to a new tenant,” he said.
“During this period, a court case took place which granted Magwaza permission to reenter the property. However this ruling was appealed and a stay was granted against this judgment pending the appeal.”