When Harbour Arch Investment advertised its plans to construct additional floor space on the property, Capital Propfund demanded payment, as provided in the lease assignment agreement. Harbour Arch said that the payment obligation was no longer applicable, since it was now the owner of the property.
Until then, clause 18 of the lease assignment agreement had said in the event that Harbour Arch Investment developed additional floor space on the property, it had to pay Capital Propfund an amount of money, computed on a specified formula.
Harbour Arch said that the payment obligation was no longer applicable, since it was now the owner of the property. The SCA has now found that the payment obligation was only applicable as long as the land lease remained valid.