Northern Cape department, landlord locked in R40 million rent dispute over 'Glass Palace'

A LEGAL tug-of-war has erupted over R40 million in rental payments that Ocean Echo Properties claims it is owed by the Northern Cape Department of Transport, Safety and Liaison for the lease of its offices, dubbed the “Glass Palace”.

Ocean Echo Properties (Pty) Ltd has lodged an urgent appeal in the Northern Cape High Court against an order granted in December 2025 that permitted the department immediate access to the building after the entrances were locked and chained from March 10, 2025.

The company is also challenging an order directing that rental payments be made directly to Nedbank.

The legal representative for the Department of Transport, Safety and Liaison, Advocate Mpho Rasivhetshele, told the court that the department stopped paying rent after it vacated the offices on the corner of Sydney and Lennox streets following the issuing of two prohibition notices by the Department of Employment and Labour.

“The department would be in contempt of an order if it paid rent directly to Ocean Echo Properties that is not due to them. The landlord withheld access to the building, and the department was unable to fulfil its obligations to the public. It was unable to submit its annual financial reports, as it needed to retrieve personnel and departmental files from the premises,” Rasivhetshele said.

She indicated that all rental payments were up to date until the department vacated the building on November 26, 2024, following occupational health and safety concerns.

Structural defects and ventilation problems were identified, the lifts were out of order, and staff complained of asthma and other respiratory issues, as the windows could not open and the air-conditioning system was not functioning.

Rasivhetshele explained that an agreement had been reached with Nedbank to suspend payments once the prohibition notices were served.

She added that the earliest court date granted for the department to gain access to its movable and immovable assets was January 2027.

The legal representative for Ocean Echo Properties, Advocate Johan Harmse, said the company would be placed under liquidation due to the outstanding rental payments.

He explained that access to the building was denied as a “bargaining chip” to place pressure on the department to honour its contractual obligations.

Harmse argued that the department’s spoliation application to reclaim its movable and immovable property could not be regarded as urgent if it was only set down to be heard in January 2027.

Judge Albert Nxumalo reserved judgment.