O and L Denied Rent Reduction Request

THE City of Windhoek has turned down a request from Ohlthaver amp List Group to reduce the rent on parking space at Wernhil Park.

OampL had requested that the rent should be reduced from N$6 to N$3,50 per square metre, but the management committee recommended against reducing the fee citing lack of funds for the municipality. They also argued that while OampL were asking for a reduction, their profits kept rising.

Although it is not clear how much OampL are paying now, council records show that in 2009 they were paying N$90 918,84 per month subject to an annual increase.

In their application letter dated 22 April 2014, OampL initially appealed to the municipality to amend the existing rental of parking space (also known as air-right lease) agreement signed on 1 February 2005.

They also asked for the amendment of the addendum signed on 14 June 2005 to convert the existing top level parking at Wernhil Park from parking to retail.

In the letter, Marco Wenk, Broll amp List Property Management managing director, sought approval to construct an additional 15 000 square metre or two more parking decks to the existing structure at Wernhil.

They also sought approval to build a bridge over Fidel Castro Street linking Wernhil to erf 2611 to create a seamless crossover.

“This bridge will be similar to the one that currently links Post Street Mall over Mandume Ndemufayo Ave, with Wernhil Park Shopping Centre,” the letter says.

In addition, the company reqiexcluested approval to buy erven R6871 and 6873.

Wenk said the shopping centre would commit to retaining current usage in terms of the ground floor areas of both properties as per current agreement as a public parking and a taxi rank facility.

“Alternatively, should the sale of one or both of the above-mentioned properties not be considered by the City of Windhoek, we request your approval for a reduction in respect of the current air-right rental rate,” the letter read.

It noted that the additional parking to be constructed on the northern parking area as part of Phase 4, as well as the bridge over Fidel Castro Street, will exceed approximately 16 000 square metres.

This would be in addition to the existing 41 692 square metres already leased from the City of Windhoek by way of a long term air-right lease agreement.

Based on the substantial area of almost 58 000 square metres, Wenk said they request that the air-right rental rate for all areas be reduced to N$3,50square metre from the average current rate of N$6square metre upon completion of Wernhil Park Phase 4.

The letter also requested approval to incorporate the two towers located at the Post Street Mall entrance to Wernhil Park, into the Phase 4 development.

This will substantially enhance the appearance of Post Street Mall as well as the entrance to Wernhil Park.

Currently, and although both towers serve as fireemergency escape routes, the same are currently let, which is a substantial safety risk in respect of that area. Wernhil Park will commit to maintaining and keeping both towers free of any obstructions in future.

OampL indicated in their application in April last year that the total anticipated investment is approximately N$530 million, and will be their largest investment into the Windhoek CBD-based property portfolio to date.

The application also noted that it is anticipated that 750 jobs will be created during the construction phase with an additional 500 permanent positions being created by way of retailers.

OampL indicated that they would have liked to commence with the development as soon as possible with completion being set for the first quarter of 2017.

Source : The Namibian