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Nicholas van Hoogstraten and Mr Stewart Cranswick, through their respective companies, own two stands next to each other.
They have clashed over the rentals from the building, built across the two stands.
Mr van Hoogstraten is representing Willoughby’s Investments while Mr Cranswick is for Peruke Investments.
Lonrho Building houses the World Bank offices along Nelson Mandela Avenue. A share-out of the rentals from the bank is the bone of contention.
There was an earlier arbitration which awarded Peruke Investments 70 percent of the rentals,with Willoughby’s Investments getting 30 percent.
The award was made by Retired Justice Anthony Gubbay,
Willowghby’s is now challenging the arbitration award at the High Court, arguing that the two should receive 50-50 shares on the rentals.
VAN HOOGSTRATEN
Willoughby’s Investments’ lawyer Advocate Lewis Uriri has filed an application at the High Court to set aside the arbitration award.
The company argues that the award which they became aware of in March 2011, was contrary to the public policy of Zimbabwe and that it should be set aside.
Harare lawyer Mr Shingi Mutumbwa of Mutumbwa, Mugabe and Partners is instructing Adv Uriri in the matter.
Atherstone and Cook is appearing for Peruke Investments.
The two companies are co-owners of the building on the basis that it was built on both pieces of land.
Prior to each of the companies acquiring the land, Lonrho Africa owned it and the building was utilised as one composite building.
Willoughby’s Investments paid 30 percent of the total price under conditions that are still disputed by both parties.
Peruke paid 70 percent of the value of the property.
On November 26 1999, the parties jointly leased the property to the International Bank for Reconstruction and Development (World Bank) for an initial period of five years.
The lease has since been extended to August 31 2014.
The agreement was silent as to the apportionment of rent between the joint lessors.
The parties failed to agree on the sharing of rentals, with Willoughby’s Investments accusing Peruke of receiving rentals for some years without accounting to its co-lessor.
The matter was referred for arbitration and Retired Justice Gubbay ordered that Peruke Investments should get 70 percent while Willoughby’s Investments should get 30 percent.
In the arbitration, Willoughby’s Investments argued that there was never an agreement on the apportionment of rent.
Mr van Hoogstraten testified on behalf of Willoughby’s Investments, a subsidiary of Willoughby’s Consolidated PLC incorporated in the United Kingdom.
He told the tribunal that he heard Lonrho properties were on sale and he offered to buy the building and the two stands.
He was later informed that there was now another interested party, resulting in the tender proceedings being instituted.
Mr van Hoogstraten was later advised that the tender was unsuccessful after “somebody” else had put a slightly higher offer.
He suspected that his letter had been opened before the right time and was disclosed to Mr Cranswick.
According to Mr van Hoogstraten, an official at the company running the tender admitted that “something sinister” had been done, resulting in Willoughby’s Investments being asked to pay less – 30 percent as compensation.
Ms Watson, the finance manager for Mr Cranswick’s group of companies, testified before the arbitrator.
She stated that Mr Cranswick did not see Mr van Hoogstraten’s tender and that he genuinely won the tender.
When Mr Cranswick heard that Mr van Hoogstraten was threatening to derail the sale, Ms Watson said Mr Cranswick then decided to go along with a settlement rather than to wait for up to four years to conclude litigation.
She said it was agreed at a meeting that there would be 70:30 apportionment of the purchase price and that Peruke would get 70 percent of the rentals.
Peruke also believes it is entitled to 70 percent of the rental as spelt out in the arbitration award.
Online Reporter