Grove Mall of Namibia and Namibia Gadgets Supplies have reached a settlement agreement in which the later will pay nearly N$500 000 to settle a dispute in which the Mall had sued Gadgets for over N$1 million in ‘unpaid rentals’.
The dispute emanated from a lease agreement pertaining to Shop 485, Upper Level, Grove Mall measuring approximately 47.00m², plus one basement parking bay, for a period of three (3) years, commencing on 1 October 2017 and terminating on 30 September 2020.
A settlement agreement seen by Business Express shows that Gadget supplies would pay the capital amount of N$475 000, first paying a lump sum of N$200 000 and then paying the remaining N$275 000 in instalments over six months.
“Upon receipt of the first payment of N$200 000, the creditor undertakes to restore possession of any or all stock in trade which may be still in its possession. The creditor takes no responsibility left in its possession by the first debtor.
“This settlement agreement is in full and final settlement of all claims which either party may have with each other, now or in the future, relating to lease of shop 486 and or 485 grove mall. This settlement agreement will be made an order of court,” read the settlement agreement seen by Business Express.
Initially, Grove Mall had sued Gadget supplies for N$1,053,427 alleging that Namibia Gadget Supplies had t failed, refused and/or neglected to make payment of rentals and lease-related charges.
In court documents filed by Grove Mall as the plaintiff, it highlighted that in the lease agreement, Namibia Gadget supplies was liable to agreed costs.
“The following amounts were payable by the first defendant to the plaintiff in terms of the Lease Agreement: Monthly basic rental in an amount of N$ 710.00/m² (VAT excluded), escalating at 10% per annum compounded, monthly parking rental in an amount of N$ 660.00 (VAT excluded) per basement parking bay, escalating at 10% per annum compounded, monthly contribution to the marketing fund calculated at 5% of the net rental, turnover rental calculated at 10% of the annual net turnover, deposit in the amount of N$99,349.00, lease administration fee in the amount of N$ 2,500.00 (VAT excluded), stamp duties in the amount of N$6,812.00, pro-rata share of local authority and municipal charges in respect of the common area: rates, refuse removal, meter readings, waste management, sewerage removal, municipal levies, water, electricity and the like.
“Consumption charges in respect of local authority and municipal charges relating to the leased premises for: rates, refuse removal, meter readings, waste management, sewerage removal, municipal levies, water, electricity and the like,” Grove Mall said adding that the lease agreement also contained further conditions.
Among these was that if any amount payable by the First Defendant to the Plaintiff in terms of the Lease Agreement is not paid on due date, such amount shall bear interest from the date for payment until the date of actual receipt of payment at a rate of 2% (two percent) above the prime rate.
Furthermore, in the event of the rental or any other amounts payable by the First Defendant to the Plaintiff in terms of the Lease Agreement not being paid on due date, and should the First Defendant fail to remedy such breach within seven (7) days after having been given written notice to do so, then the Plaintiff shall be entitled to cancel the Lease Agreement forthwith and with immediate effect retake possession of the leased premises, without the requirement to give any further notice to remedy such breach and without prejudice to any claim for arrear rental or damages it may have. Notwistanding the a foregoing, no notice of breach shall be required from the Plaintiff if the First Defendant has twice during the same twelve (12) month period breached the same or similar provisions of the Lease Agreement.
The alleged pending rentals were between a period between March 2019 and December 2020 in which rentals excluding other elements was N$42 213 in 2019 before increasing to N$46 434 in 2020. Other payments included parking rental, marketing fund contribution, rates, meter readings, sewerage, waste management, refuse removal, water and electricity.