Hotel company’s court bid fails again, will be evicted from university premises

A hotel company has failed in its court bid and has been given a month to vacate a Cape Peninsula University of Technology’s (CPUT) property where they want to continue operating the administration of accommodation.

CPUT, after a counter-application to the Western Cape High Court to have the matter heard in the fast lane of the division, was recently successful and granted an eviction order provided that the university pay the company R4.8 million for liens costs.

Ma-Afrika and tenants in a number of units at the Welgevonden sectional title scheme premises – which are used for the purposes of student accommodation for CPUT students and were originally also leased to Ma-Afrika for running its Best Western Cape Suites Hotel, restaurant and conference centre – were given a month’s notice to vacate the premises, ordered by high court acting judge Melanie Holderness.

The litigation between the parties started in 2021 when Ma-Afrika Hotels was aggrieved it was not automatically granted the 10-year tender for the administering of accommodation at the premises, after a different company was awarded the tender.

This has delayed the new service provider to take occupancy at the premises by seven months.

The new service provider was to take over as Ma-Afrika’s financial state had nose-dived significantly since 2021, resulting in them not being able to pay essential services such as sanitation, electricity and security services were at imminent risk of disconnection and termination due to non-payment.

The situation had become so dire that at some stage Ma-Afrika was “unable to even pay for the delivery of toilet paper for the student accommodation”, court documents read.

CPUT Vice-Chancellor Professor Nkogwane Nhlapo submitted affidavits to the high court motivating why the matter was urgent and why the university sought vindicatory relief.

He had submitted that Ma-Afrika was unlawfully holding over the premises purchased by CPUT for R131m, for student accommodation in the public interest, using public funds.

“CPUT’s appointed service provider, Park Central, which had lawfully been appointed as student accommodation operator for the premises for a limited 18-month period with effect from 1 April 2023 to 30 September 2024, was unable to take over operational control of the property due to Ma-Afrika’s unlawful occupation. Almost one third of that period had already elapsed...

“CPUT was self-evidently suffering harm by being unable to use and take control of its own property.

“ As a result, it was unable to plan effectively for the use of the premises as long as it remained occupied by Ma-Afrika,” judgment read.

CPUT was unable to proceed with its plans to use the areas of the property occupied by Ma-Afrika’s hotel for student accommodation operation for as long as Ma-Afrika was occupying the property.

Ma-Afrika has instructed its legal team to consider the court order with the view to filing an application for leave to appeal.

“The effect of this is that CPUT will be unable to save approximately R2.5 million in student transport costs and unable to increase its income by approximately R15 million per annum due to additional student residence fees and state funding allocations, which will only occur when the hotel units are converted to additional student accommodation…

“In respect of any right of retention based on the liens claimed by Ma-Afrika, CPUT has tendered security by way of a bank guarantee in the amount of R 4 863 859.63 for payment of the total amount in respect of the liens claimed by Ma-Afrika,” judgment read.

Ma-Afrika has instructed its legal team to consider the court order with the view to filing an application for leave to appeal.

Despite the legal actions, Ma-Afrika continued to provide accommodation and services to the 370 CPUT students, a company spokesperson said.

CPUT spokesperson, Lauren Kansley, said: “CPUT notes the judgment in our favour and is reviewing its options in this regard.”

Cape Times