The Johannesburg High Court has issued an eviction order to eject popular South African sneaker brand Drip from Springs Mall in the Far East Rand of Gauteng for failing to pay rent.
The injunction was issued to mall owners Blue Crane Eco Mall, Vukile Property Fund, Murinda Investments, and F&G Investments 2 on June 11 after Drip and its owner, businessman Lekau Sehoana, who are the first respondent and second respondent respectively, plunged into R354 000 arrears after failing to pay rent.
The court order, which we have seen, reads: “Having read the documents filed of record and having heard counsel, and having considered the matter, default judgment is granted against the defendants, jointly and severally the one paying the other to be absolved, for payment of the sum of R354 422.24.
“Ejectment forthwith of the first defendant and anyone claiming occupation through the first defendant from the commercial leased premises described as shop SH10L072 (measuring approximately 59.19 square metres), Springs Mall, Erf 1257, Casseldale Extension 4, situated at corner Wit and Jan Smuts Road, Casseldale, Springs, Gauteng.”
The landlords applied for the order against Drip and Lekau last year to kick them out of the building for failing to pay the quantum in rent and services.
In the application, the owners said they entered into an agreement with Drip and Lekau on February 2, 2021, to lease commercial space to operate the shop in the bustling mall.
In terms of the lease agreement, they said, Drip was supposed to pay a monthly rental fee of just under R20 000.
The fee, which excludes value-added tax, was supposed to increase by 8% per annum or 8% of Drip’s annual net turnover.
Drip was also expected to pay just under R1 000 per month for marketing charges, R4 100 for parking, and a pro-rata share of municipal rates of over R1 200.
This, they said, excluded more than R87 000, inclusive of electricity and water consumption charges, refuse removal charges and R3 000 in administrative costs.
Drip was expected to furnish the owners with an audited statement of the net annual turnover within three months of the close of each financial year.
This was required to be certified as correct by its auditor, reflecting its net annual turnover.
This, they said, was for the purpose of determining the quantum Drip was supposed to pay from its net annual turnover.
If Drip failed to pay the amount, they said, it would be in breach of the lease agreement and the owners reserved the right to terminate it and re-let the shopping space.
“The first defendant breached the terms of the lease agreement by failing to make payments as agreed of the monthly rental and/or turnover of the first defendant’s account, which amount is presently due, owing, and payable.
“The plaintiffs hereby cancel the lease agreement as the plaintiffs are entitled to do effective herewith,” read the papers.
They said that as a result of the early cancellation of the lease agreement, they had suffered fair and reasonable damages of over R88 000.
The amount includes December 23 to February 2024 rent of R79 000, R4 000 marketing, and R5 000 for rates.
“Payment of the amount of R399 621.85, ejectment, forthwith, of the first defendant and anyone claiming occupation through the first defendant from the commercial leased premises described as shop SH10L072, Springs Mall,
Gauteng,” read the papers.
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