TENANT IN MALL REQUIRED TO ACTUALLY CONDUCT BUSINESS ACTIVITIES?
Edcon Limited v Bay West City (Pty) Ltd (A5029/17)  ZAGPJHC 39 (6 March 2018)
A shopping mall landlord wants to see that all stores are tenanted and attracting feet, for its own sake and also because there are reciprocal advantages for all the other tenants. This matter dealt with such a lease that contained a term obliging the tenant to continue trading from the premises. The tenant, for financial considerations, decided to close its store but continued paying the rental and performing other obligations under the lease. The Court was asked to determine whether this constituted a breach of the lease agreement. Although the judgment is therefore based on interpretation of the wording used in the agreement, it also highlights how important it is that such agreements deal carefully with the consequences of a paying tenant deciding no longer to run a store from its premises.
STBB’s STSMA REFERENCE GUIDE
In this, the forty-seventh set of notes for your STSMA Reference Guide, Prescribed Management Rule 26 is discussed.
Prescribed Management Rule 26
(N.B. Print in landscape)