The Nation Newspaper

Tag: tenants

  • Tenants tackle landlord over controversial ‘distressed’ building

    Occupants of a building at 13, Alhaji Bashiru Street, Ojodu, a suburb of Lagos, have faulted the claims by the owner of the building that it was distressed.

    The owner of the two-storey building, Pa Ganiyu Bolaji Davies, alleged in a report published penultimate Saturday by The Nation that his tenants had refused to move out of the building after it became distressed following a fire disaster that ravaged it in 2013.

    Some of the tenants of the building, including Kolawole Usman, Olusola Tuase and Sunday Okeke, said Pa Davies was spreading falsehood about the true state of the house.

    “The building used to be a bungalow until it was renovated in March 2013 by a developer,Hassan Habeeb, who was contracted by Pa Davies, popularly called Gabovies. Habeeb was to manage the property for 18 years. We moved into the building in April 2013 and to our dismay a few months later, Pa Davies asked us to move out of the house following a disagreement with the developer, whom we had paid two years rent.

    ‘’We told him that he cannot ask us to quit our apartments on the ground that he was not known to us and that our rent was paid to Habeeb. We asked him to settle his differences with Habeeb but he has refused till date.

    “Pa Davies went ahead to disconnect electricity supply to the building and even invited officials of the Lagos State Building Control Agency (LSBC) to inspect the building  alleging that it was distressed. The Lagos State Materials Testing Laboratory (LSMTL) also carried out tests on the building and its report did not indicate that the building was distressed.

    “When Pa Davies found out that his efforts to forcibly eject us had failed, he wanted to use a fire outbreak, which ravaged a portion of the top floor of the building, to ease us out of the house. The truth is that, Pa Davies had taken the developer to court in order to repossess his house from him, but the court  presided by Justice Bola Okikiolu asked Pa Davies to refund the sum of N30 million to Habeeb in respect of the 18- year lease agreement.

    ‘’As we speak, Pa Davies has not paid the money to Habeeb and our tenancy is still valid.Towards the end of last year, he invited some men of the Criminal Investigation Department(CID), Alagbon, to eject us but we explained to the officers that our rent _was still valid and that Pa Davies had not refunded our rent as promised.All the allegations he made against us in your publication last week were lies and figment of his imagination. At the moment, he has no right over the building because he has not refunded the N30 million to the developer as directed by the court, hence, Habeeb remains the person we know as being in charge of the building.’’

    In a telephone conversation with our correspondent, Habeeb said Pa Davies was spreading outright lies in a bid to take his building from him through the back door.

    “He contracted me to develop and manage the building. We signed an 18-year lease agreement and I paid him the sum of N500,000 to seal the agreement. After I had completed the job and got tenants into the building, he suddenly wanted to severe the agreement and I refused. He filed a suit against me and the court has asked him to refund the sum of N30 million being the value of what I spent to renovate the house from an uncompleted bungalow to a two-storey building. Instead of paying me the money as directed by the court, he has been troubling the tenants all in a bid to forcibly take the house from me. The truth is that he cannot have his house back until he pays me my money.’’

    Pa Davies, however, told our correspondent to disregard the remarks of his tenants and developer, citing the judgment of the court which empowers him to make refund to occupants who are yet to secure apartments after paying money to Habeeb.

    “I gave the job to Habeeb in 2012. He was to manage the building for 18 years but part of the agreement was that he would give me three mini-flat apartments on each of the floors of the building. Instead, he rented out all the 27 mini-flats without giving me mine as agreed. I then got   a _judgment to retrieve the building from him and I was ordered to pay N30 million to those who have paid him money but are yet to take possession of their apartments.

    “A portion of the building was set ablaze by one of the tenants. As a result of this, the building has become deplorable,hence, I asked them to move out. I asked them not to pay any rent to Habeeb and because of that, the tenants started subletting their apartments. They have refused to vacate their apartments even when their rents had expired. I did not disconnect electricity supply to the building, on the contrary, the tenants were the ones that raised the alarm over poor installation of electric wire into the building.

    ‘’When they came to me, I asked that light be disconnected from the building pending the time the problem would be fixed. Light has since been restored to the building after the error was corrected by electricians from a public electricity distribution company.’’

    In a judgement delivered by Justice Bola Okikiolu-Ighile of an Ikeja High Court on June 27, 2013, the court, among others, ruled that the claimant(Pa Davies) “shall pay the sum of thirty million to the defendant (Habeeb) being the sum for the developed property in respect of the 18-year lease period executed in favour of the defendant as contain in the said lease agreement.”

  • Prospective tenants lose N5m to developer

    A 42-YEAR-OLD Muslim cleric,Abdulateef Ibrahim, is being detained by the Lagos State Special Anti-Robbery Squad (SARS) for allegedly duping 34 accommodation seekers of over N5 million.

    The suspect hails from Agbekun in Ifelodun Local Government Area of Kwara State, but lives in Orile-Iganmu in Lagos.

    He is said to have absconded after collecting money from the victims for one-room, a-room-and-a-parlour, self-contained apartments and mini-flats without meeting their demands.

    After waiting for long, 10 of the applicants forced themselves into some of the apartments, fixed doors and windows, and moved in.

    Lagos Police Command’s spokesperson Ken Nwosu, a Deputy Superintendent (DSP), said the suspect claimed to be an estate agent/developer.

    Nwosu quoted the suspect as saying that he collected N950, 000 from his mother-in-law to develop and let out her plot at 2, Odumola Street in Ajegunle, Lagos.

    After collecting between N100, 000 and N400, 000 from each of the victims, the suspect claimed he used the money to build the house.

    His arrest followed the landlady’s petition to the Commissioner of Police, Kayode Aderanti.

    Defending himself, Ibrahim said: “My in-law gave me an old house at 2, Odumola Street, Ajegunle. I was a bricklayer and cement supplier for six years. On March 27, my in-law gave me N450, 000 to renovate the house. When it finished, she gave me another N500, 000 but she could not give me more money to continue. To save the building from collapsing due to the coming rainy season, I put the apartments up for let.

    “I collected N5, 000,170 from 33 applicants and spent the whole money on the building. As I am talking to you now, I don’t have one kobo in the bank or house.’

  • Tenants in power, time is running out

    Tenants in power, time is running out

    “Be the change that you wish to see in the world.” _¯ Mahatma Gandhi

    The much-awaited year 2015 is just unfurling with the month of March, the third in the year, nearly getting to its middle. Among individuals, especially the occupants of exalted positions in the corridors of power, the way last year ends might vary but we can only hope and pray for the best in 2015. As private persons or as public personalities, how far have we gone in meeting set goals; for self and society? Those in power and who are about to contest the coming elections should not become victims of excuses, even though there is never enough time to do all we set out to achieve; we should strive to be nothing but conqueror of objectives: And by objectives, this column mean those deeds that could stand the test of time and benefit humanity.

    Time is of essence in life. It is what keeps everything from happening at once. Every living being has own time or better put-magic moment. As the March/April elections are approaching, individuals in power have their time in their hands; how best have they deployed it. Is it used for egocentric purposes or for more enduring ventures? Whether you are president, governor, minister, commissioner, local government chairman or directing mind in an organisation among other powerful positions, by the turn of May, 2015, your days in office would come to an end, except for re-elected first term politicians in office. The crowd of people you see around you today would not be there forever. They throng around your position, not your person. When another person occupies the seat tomorrow, you automatically become history and what you live on subsequently is your good deeds-or better put legacy. Have you, despite your present position, ever given this inescapable looming reality any deep thought in the midst of privileged reverence that you are daily accorded by virtue of your position?  Let us all remember in whatever grandeur it might currently please God to place us as another tenure beckons that there comes a time when the world gets quiet and the only thing left is our own hearts- the ultimate judge of human conducts. The earlier we learn the sound of our hearts, the better so that we can correctly decipher what it is saying and follow it. The problem with powerful men is that they have avoidably failed to be loyal to their conscience and have failed to discern inevitable change and challenge when about to occur. The saddest words that could ever come out of the mouths of once-upon-powerful-fellows are: ‘It might have been.’ As these elections get closer, you still have the power to shape you today and the future. Whatever part you deliberately chose, whether of self-perdition or sentence to irreverent oblivion should not be subsequently called mistakes?

    Remember, as the elections are about to commence that there have been tyrants and slayers, and for some time, they can seem insuperable, but in the end, they always fall. Remember that it is your actions, not the fruits of your actions that would count against or for you on judgement day, which is why you must endeavour to always do what is importantly right. Let your action not be informed by personal gains or malice because that may not be in your power to decide. God in His infinite mercy might decide to let your actions or inactions benefit humanity and not even you can stop that? But you would be remembered, long after you have gone as the harbinger of that good action, and would be duly celebrated one day. But that doesn’t mean you should stop doing the right thing because there may not be immediate personal gains. You may never know what results come from your actions. But if you do nothing, there will be no result to celebrate in the world.

    As elections are about to unravel, remember that yesterday is but today’s memory, and tomorrow is today’s dream. What dreams do you have as a leader- for the country as her directing mind and the world at large so that there can be a peaceful global village for all to co-habit? Do not be deceived by the false friends or deterred by true enemies that success usually attract. Just make sure you put in your best in all you do in whatever position you might presently be privileged to occupy.

    Having gone this far, it is pertinent to remind our privileged men of power on the need to engage in pertinent self re-examination. The president, governors and other political appointees by now would be buying time in power. The president and most of the governors would have become lame duck in their positions since fresh elections have been rescheduled for March/April, 2015 by the Independent National Electoral Commission (INEC). Political parties have nominated candidates that would stand for elections into these exalted positions and the likely candidates that would take-over power would be seeking the hands of the people. That has been the tradition of CHANGE of baton in the political firmament. But those that did well by the end of March/April would be filled with certain sense of fulfilment.

    How would our current crop of elected and appointed public officers want to be remembered? What future have they built for their families through their handiwork while in government? Is it one that will invite opprobrium or acclaim from members of the public? Is it not probably too late for them to remedy their avoidable pitfalls of the past now that the elections are just weeks away? And for Nigerians: Are they ready to tolerate the misfits in government that continue to rigmarole them with bad governance? Are Nigerians going to over look any failure whatsoever from the presidency, from governors and even INEC in the imminent 2015 general elections?

    We should continue to fervently pray for God’s special grace in Nigeria so that the coming 2015 general elections would not be the last to be held under this dispensation because of insinuations of violence/rigging that rents the air. This column believes in such prayers and would continue to do everything to seek divine protection and blessings for the country. But above all, the ruling class must stop its destructive do-or-die politics with which our polity has been replete with in the about 16 years of democratic rule. In conclusion, this column is in prayerfully mood for a peaceful country post May, 2015. Let us all do things in this political season with moderation and more importantly, love our neighbour as we love ourselves. We must respect and allow the people’s votes to count in the coming general elections.

  • For tenants in power, a reflection

    For tenants in power, a reflection

    The much awaited year 2015 is just unfurling. Just nine days ago, year 2014 yielded ground for this new season. Among individuals, especially the occupants of exalted positions in the corridors of power, the way last year ends might vary but we can only hope and pray for the best in 2015. Now that the merriment of Xmas and the New Year celebrations have ended, there is need for deep and sober reflections. As private persons or as public personalities, how far have we gone in meeting set goals; for self and society, in the vanished year? We should not become victims of excuses, even though there is never enough time to do all we set out to achieve; we should strive to be nothing but conqueror of objectives: And by objectives, this column mean those deeds that could stand the test of time and benefit humanity.

    Time is of essence in life. It is what keeps everything from happening at once. Every living being has own time or better put-magic moment. The year is ending and now that individuals have their time in their hands, how best have they deployed it. Is it used for egocentric purposes or for more enduring ventures? Whether you are president, governor, minister, commissioner, local government chairman or directing mind in an organisation among other powerful positions, by the turn of May, 2015, your days in office would come to an end, except for re-elected first term politicians in office. The crowd of people you see around you today would not be there forever. They throng around your position, not your person. When another person occupies the seat tomorrow, you automatically become history and what you live on subsequently is your good deeds-or better put legacy. Have you, despite your present position, ever given this inescapable looming reality any deep thought in the midst of privileged reverence that you are daily accorded by virtue of your position?

    Let us all remember in whatever grandeur it might currently please God to place us as another year runs evolves that there comes a time when the world gets quiet and the only thing left is our own hearts- the ultimate judge of human conducts. The earlier we learn the sound of our hearts, the better so that we can correctly decipher what it is saying and follow it. The problem with powerful men is that they have avoidably failed to be loyal to their conscience and have failed to discern inevitable change and challenge when about to occur. The saddest words that could ever come out of the mouth of once-upon-a-powerful-fellow are: ‘It might have been.’ As this year begins, you still have the power to shape you today and the future. Whatever part you deliberately chose, whether of self perdition or sentence to irreverent oblivion should not be subsequently called mistakes?

    Remember as the year commences that there have been tyrants and slayers, and for some time, they can seem insuperable, but in the end, they always fall. Remember that it is your action, not the fruit of your action that would count against or for you on judgement day which is why you must endeavour to always do what is importantly right. Let your action not be informed by personal gains alone because that may not be in your power to decide. God in His infinite mercy might decide to let your action benefit only humanity and nobody can stop that? But you would be remembered, long after you have gone as the harbinger of that good action, and would be duly celebrated one day. But that doesn’t mean you should stop doing the right thing because there may not be immediate personal gains. You may never know what results come from your action. But if you do nothing, there will be no result to celebrate in the world.

    As 2015 unravels, remember that yesterday is but today’s memory, and tomorrow is today’s dream. What dreams do you have as a leader- for the country as her directing mind and the world at large so that there can be a peaceful global village for all to co-habit? Do not be deceived by the false friends or deterred by true enemies that success usually attract. Just make sure you put in your best in all you do in whatever position you might presently be privileged to occupy.

    Having gone this far, it is pertinent to remind our privileged men of power on the need to engage in pertinent self re-examination. The president, governors and other political appointees by now would be buying time in power. The president and most of the governors would have become lame duck in their positions since fresh elections have been fixed for February, 2015 by the Independent National Electoral Commission (INEC). Political parties have nominated candidates that would stand for elections into these exalted positions and the likely candidates that would take-over power would be seeking the hands of the people. That has been the tradition of change of baton in the political firmament. But those that did well by the end of February would be filled with certain sense of fulfilment.

    How would our current crop of elected and appointed public officers want to be remembered? What future have they built for their families through their handiwork while in government? Is it one that will invite opprobrium or acclaim from members of the public? Is it not probably too late for them to remedy their avoidable pitfalls of the past now that the elections are just weeks away? And for Nigerians: Are they ready to tolerate the misfits in government that continue to rigmarole them with bad governance? Are Nigerians going to over look any failure whatsoever from the presidency, from governors and even INEC in the imminent 2015 general elections?

    We should continue to fervently pray for God’s special grace in Nigeria so that the coming 2015 general elections would not be the last to be held under this dispensation because of insinuations of violence that rents the air. This column believes in such prayers and would continue to do everything to seek divine protection and blessings for the country. But above all, the ruling class must stop its destructive do-or-die politics with which our polity has been replete with in the about 16 years of democratic rule. In conclusion, this column is wishing all its readers, once again, a belated merry Xmas and hopefully gratifying New Year, in prayerfully a peaceful country post May, 2015. Let us all do things in this political season with moderation and more importantly, love our neighbour as we love ourselves. We must respect and allow the people’s votes to count in the coming general elections.

  • Why tenants are quitting malls

    Why tenants are quitting malls

    About a decade ago when shopping malls made their debut in the country, retailers jostled for the few spaces available. Today, the story has changed as retailers are quitting the malls. Could this have been due to low patronage? Could it have been as a result of stratospheric rise in rent or an attempt to reposition the malls?  TONIA ‘DIYAN asks.

    A few years ago, the former Chief Executive Officer, Broll Nigeria, Mrs Erejuwa Gbadebo, said any start-up eyeing the malls would be on a wild geese chase because raising the funds to do that would be herculean.

    She said: “A young entrepreneur, who wants to start up a business inside any of the malls, may find raising the start-up money difficult. Only big retailers can become tenants in the malls because they can afford the high rent and meet management requirements.”

    Like a prophetess, what she said years ago is playing out as even top brands with the financial war chest are leaving the malls due to some of the challenges she identified.

    The Nation Shopping found out that most of the tenants in these stores no longer generate reasonable rate of returns on such investment and are forced to quit those cozy buildings.

    It is however not a general phenomenon as some tenants continue to report good returns on their investment as the lease renewal factor in some malls say it all.

    Mall owners argue that there is still high demand for retail space as human traffic remains extremely high and sales grow exponentially. They say more and more brands want to move into the few available malls on a daily basis.  According to them, 99 per cent of tenants have renewed their lease agreement in the malls.

    They however argue that the reason for the trend might be to reposition the malls for continuous patronage. They said brands that have left the malls are those that did not meet the needs of the customer on price, variety, type and size of merchandise.

    Ikeja City Mall Marketing Manager, Eniola Ositelu, said most of the tenants that have left the mall used the wrong business model and were not prepared to change the model to conform to the mall’s policy. Thus, they became casualties because their values to the mall with their low sales became unsatisfactory.

    He said: “There have been three other casualties recently and these have been replaced with tenants that are performing extremely well. Tenants such as TM Lewin, V Shop and Melting Moments are doing wonderfully well, meeting all the requirements their clients,” he said.

    The Nation Shopping also found out that the exit of some South African retailers from some malls is solely based on the decision of the management of these malls to restructure the tenant mix and ensure the mall delivers a complete shopping experience to shoppers. Supply chain is said to have become an issue for some foreign retailers, particularly the South African retailers. Mall managements say they have discussed in detail with the retailers but most of them cannot change their business model to suit the Nigerian customer.

    According to mall experts, local tenants also face the same supply chain issues but overcome them with proper planning and proper stock picking.

    Though, there are a few tenants that underperform relating to issues of stock, display, merchandising, size ranges, varieties and so on, others have the best performances in their groups in some instances because they put the right effort and brain work into running their businesses.

    Ositelu told The Nation Shopping that there are strong brands that still trade in the mall. Brands such as Silverbird Cinemas, Mr Price, Da Viva, Mango (clothing outfits) amongst others are still in the mall. He explained that top brands such as  Lacoste, Audacious and Max have recently moved in and have started trading. His words: “Woolworths was the only store to arbitrarily close and that space has been re-let to two international brand clothing and fashion houses (Max and Red Tag)”

    He added that the decision for Truworths and Identity to quit the mall was taken by its management and the space has been re-let to Woodin, a new outfit. “75 per cent of Truworths space has been re-let to a brand that will be announced in due course when the lease is finalized,” he said.

    He said the mall anticipates that the balance of the space will be gone shortly as offers are out to 4 other international brand tenants adding that the mall still attracts the most foot traffic than any other mall in Lagos.

    “At Ikeja City Mall, tenants continue to trade and do well and will continue to do so.  The fact that all tenants who are due for lease renewal this year want to renew their leases is encouraging,” he said.

    Experts have said Nigerian businesses and consumers can and will benefit in due course as the point of the spear which will drive Nigerian retail business into the future is a number of new malls that are under construction or are being planned. Once Nigerians stop going to London to shop for goods and services they could conveniently get in Nigeria, then the first hurdle has been overcome. Devolving regulation on imports would be very good for the retail business. For example, if costs are brought down on electricity by having a steady supply, this will lead to substantial savings for retailers, thus will benefit the consumer.

    Ositelu concluded by saying: “There is a lot more positive news than negative and the smart retailers are taking advantage of this first wave, because they know they will grow retail empires in the years to come.”

    Advising retailers and brand owners, Gbadebo, said: “Owners of these malls look for successful merchants who are ready to convince them that the new store they are about to house has reasonable chance of success and will help the tenant mix.

    “If, as a retailer, you are considering a mall for a first-store venture, your financial backing and merchandising experience must be proven. Some small merchants with good business records and proven understanding of the market have a good chance of being considered by a mall developer. So, if a particular merchant has a good reputation in retailing, it might make a strong case for acceptance into his/her choice mall.”

    Mall experts say before a retailer moves into a mall, it is necessary to ask important questions such as: ‘Are the mall’s shoppers my prospective customers? Would the mall offer the best sales volume potential for my kind of products? Can I produce the appeal that will make customers come to my store? Can I deal with the competition of other stores within the mall? How much space do I need to handle the sales volume I expect to have? Where do I need the space (location within the mal)l?

    South African Norman Sander who works with Broll Nigeria said, for retailers who are prepared to develop a country-specific model and invest in research to support a supply chain, they should get the right stock, provide the best price and render the best services, rather than quit doing business in the country because there’s a bright future here.

    Sander said he has noticed a massive gap in the market for home ware retailers and he advises them to come and do business in Nigeria.

    Having said all these, some merchants say they find full satisfaction as mall tenants and do not intend to quit.  For Moradeke, owner of an accessory store, the drive is the crowd that throngs these malls daily. “Accessory stores make huge sales, especially at weekends and people visit the mall more on weekends; so, I make double the amount I make during the week. Another benefit is the location of these malls. They are very accessible,” she said

    And for Temitope, a cosmetics retailer, the mall is an interactive business-friendly environment. “Sales are better now that I am in a mall,” she said.