By Our Correspondent
Lagos (INVESTADVOCATE)-First Bank of Nigeria Plc (FBN) owes the sum of about N3.0 million on rents from December 2010 to date.
This is coming on the heels of a 50 years lease from late Madam Soyoyo effective December 1960 to December 2010.
The property in question is 27, Abeokuta Motor Road, Agege, Lagos belonging to Emmanuel Olufela Sowunmi who inherited it from his mother late Madam Fehintola Jokotosun Soyoyo.
From the documents made available to InvestAdvocate, Oluwafemi Omotoso & Co, Legal Practitioners in a letter dated June 09, 2010, confirmed the lease covers a plot of land measuring 518 20 square yards located at 27 Abeokuta Motor Road, (near AP Filling Station) Agege and said to serve First Bank as its cash centre in Agege.
Prior to the expiration of the lease facility, Oluwafemi Omotoso & Co, Legal Practitioners informed the bank through the June 09, 2010 letter of their client’s instruction to repossess the property on December 12, 2010 upon expiration and therefore, the bank should make all necessary arrangements to relinquish the property.
The letter was sent to First Bank and copied to the manager Agege Cash Centre and was acknowledged on June 18, 2010 by the bank.
Following this, another letter dated November 19, 2010 from Ajiboye Snomi & Associates, Legal Practitioners & Property Consultants acting on behalf of Sowunmi the Landlord’s son wrote the Manager First Bank of Nigeria Plc Agege affirming that Sowunmi had agreed to grant the bank a lease after the Sowunmi had insisted that upon expiration, the bank should vacate the premises; consequent upon the bank’s appeal that the lease should be renewed.
The letter reads thus: “Sequel to our various discussions with your good self and other members of your organization, we are pleased to inform you that Mr. Emmanuel Olufela Sowunmi (hereinafter referred to as the landlord) has agreed to grant you a lease of the above mentioned premises under the following terms and conditions: Duration: 20 years, renewable every 10 years, Amount: N1.0 million per annum for the first five (5) years, subject to review after every five years., Legal fees: 10%, Agency Fees:10%, our professional fees shall be N1.0 million only,” the letter said.
Another letter dated December 14 2010 by Oluwafemi Omotoso & Co, Legal Practitioners was sent to First Bank notifying of owner’s intention to apply to recover possession.
According to the letter, Sowunmi the landlord is giving notice to First Bank that unless peaceable possession of the land and appurtenances situated at 27, Old Abeokuta Road which the bank held under a 50 years lease and now held over be given to him within seven (7) days of receipt of the notice, legal action would be applied for ejection.
Following this, First Bank in letter dated December 29, 2010 with reference Gen. Services/EST:MAO signed by Tim Bolade, Group Head General Services addressed to Emmanuel Olufela Sowunmi and through Ajiboye, Snomi & Associates Legal Practitioners & Property Consultants and obtained by InvestAdvocate reads thus: “We acknowledge receipt of a letter signed November 19, 2010 by Messrs Ajiboye Snomi & Associates in respect of the above subject offering renewal of same as a result of various discussions between us and another letter dated December 14, 2010 from Messrs Oluwafemi Omotoso & Company issuing us Notice to Quit which came to us as a surprise considering steps taken towards resolving the renewal issue with the former.
In view of these conflicting letters from two different solicitors. Kindly clarify your actual appointed solicitors to be related with in this matter as we are presently confused about the two of them,” the letter said.
This Ajiboye, Snomi & Associates responded in a letter date January 07 2011 and addressed to the Group Head, General Services of First Bank, part of the letter read thus: “Your letter with the above caption dated December 29, 2010 refers. Honestly we were surprised at your asking the landlord, who his actual solicitors are. We therefore felt that we should remind you of the facts of the case.
Sometime, on or about October 2009, a supposedly gentleman who introduced himself as the branch manager of your Agege branch accompanied by another colleague of his, approached us in our office and briefed us about their lease that was about to expire, and which the landlord had declined to renew. They told us that they were aware that we had dealt with their landlord under similar circumstances and wanted us to intervene on their behalf.
We promptly went into action and contacted the landlord of the subject property, who unequivocally told us that he was not interested in renewing the lease, principally because of the character of the tenants. He advised us as far back as that time, that we did not know who we were dealing with, that First Bank will only end up wasting our time. This was relayed back to the branch manager, who convinced us that this was a new First Bank with different set of employees.
Some months later, another set of First Bank employees came to us on the same issue. They introduced themselves as the new branch manager and a representative from the head office and reiterated the fact that they were a different breed of First Bank employees,” the letter stated.
This implied that they were ready to pay promptly on the renewal of the lease facility.
First Bank in a letter signed by Donald Igboejesi, Branch Operations Manager dated February 21, 2011 to Kingsley Snomi of Ajiboye, Snomi & Associates and titled Re: LEASE OF PROPERTY AT 27 ABEOKUTA MOTOR ROAD-AGEGE LAGOS and reads thus: “Following our discussion and agreement with you on 2/2/2011 in respect of the captioned, kindly confirm to us in writing that the landlord has accepted the payment of N2 million Naira for two years i.e N1 million per annum.
This is to enable us procure the bank cheque immediately,” the letter read.
This Ajiboye, Snomi & Associates replied immediately in a letter dated February 22, 2011 confirming that Sowunmi the landlord has agreed to grant the bank a lease of the property under the following terms and conditions: Duration of two years certain, N1.0 million per annum, Agency and legal fees of 10% respectively and a professional fee of N1.0 million.
Following this, First Bank in a letter dated March 2011, signed by Tim Bolade, Group Head, General Services reneged on the agreement.
According to letter, the bank’s management cannot accede to the sum of N1.1 million representing N700,000 as professional fee, N200,000 as Agency fee and N200,000 as legal fee.
The letter said the amount requested as the fees mentioned above its in contravention with First Bank’s policy that only 5% of the total consideration each for Agency and Legal services.
“In the light of the above and to ensure amicable resolution of the tenancy/lease issue, we are proposing the sum of N200, 000 as professional fee so as to reciprocate your kind gesture towards achieving a 2-year extension of our lease.
Kindly indicate the acceptance of our offer so as to facilitate the payment of the Bank Cheque,” the letter read.
InvestAdvocate in its bid to confirm and clarify the matter contacted Babatunde Lasaki, Head, Media and External Relations, Marketing and Corporate Communications of First Bank.
Lasaki requested we send in our concerns via email and consequently responded through the same medium.
Part of his submissions was that the bank was recently approached by the Solicitors to the landlord (Oluwafemi Omotoso and Co) for an out of court settlement on the following terms:
(a) Four years leasehold term effective from Jan. 2011 to Dec. 2014 to enable us move out of the premises.
(b) Pay the already agreed N1m per annum totaling N2m for the two years period effective Jan. 2011 to Dec. 2012.
(c) N2m per annum for another two years period with effect from Jan. 2013 to Dec. 2014 totaling N4m for the two years.
(d) From the foregoing, the total rent for the four years is N7m
(e) Pay N1.4m as legal and Agency fees at the rate of 10% each.
(f) Pay another N1m to offset the legal fees of the landlord’s Solicitors.
As at the time of filling in this report, InvestAdvocate was unable to contact Oluwafemi Omotoso and Co for comments on the recent approach to settle out of court.
Below is First Bank’s position on our enquiry:
1 The Bank took a building lease for a term of 50 years from the Late Madam Fehintola Jokotosun Soyoyo effective from Dec.13th,1960 to Dec.,12th 2010, the ground rent is payable yearly in advance and revisable every 20 years.
2. Upon the demise of the landlady, one Mr. E.O Sowunmi approached the bank and claimed to be the heir to the landlady and advised that subsequent rents on the property should henceforth be regularly remitted to him. In line with the legal provision on Estates of the deceased, we demanded for a will or Letters of Administration on the property to enable us accede to his request since we do not know him as a successor in title. When he couldn’t produce either of these, we turned down his directive. He thereafter sued the bank to enforce his ownership; the case lasted for several years and even went to Supreme Court level where the verdict was obtained in his favour. Consequently, the bank started paying rent to him. Prior, to the expiration of the lease in 2010, we made effort to renew the lease. The landlord emphatically indicated his intention not to sell or further renew the lease with the bank in view of the legal tussle that ensued between the parties. In his words, come 1st Jan. 2011(In shall Allah) the bank will cease to operate in the premises.
3. Upon the expiration of the lease and to ensure amicable resolution of the tenancy issue, the Bank on the advice of the landlord’s son, met with Ajiboye, Snomi & Associates, who has been serving as an intermediary between the bank and the landlord on how to agree on the lease extension. We held several meetings and invariably secured Management approval to pay a yearly rent of N1m per annum for the two years to cover the period Dec. 13th, 2010 to Dec.12th, 2012. (See attached management approval dated Feb. 7th, 2011 for details)
4. on the receipt of our conveyance letter for the management approval, Messrs Ajiboye. Snomi & associates requested for a professional fees of N1m in addition to 10 percent each for Agency fees and legal fess, all totaling N1.4m, we considered this to be unfair and prevailed on them to drop the professional fees, they however insisted on this in spite all our effort to secure reduction, we however considered this to be on the high side and insisted in paying only Agency fees and legal fees at the bank approved rate of 5% each. They refused to collect our cheque of N2m for the two years rent payable in advance and kept the landlord incommunicado. All effort at end to independently meet the landlord and deliver the cheque equally became impossible.
5. Consequent upon our inability to resolve this matter amicably, the landlord sued the bank to court for the recovery of his premises and litigation has been ongoing since then.
6. We have been searching for a suitable property to relocate the branch, our effort recently yielded effort in a property that was withdrawn by the owner from the market before payment could be made. We have again gotten another property but our constraint is the title document that is yet to be finalized with the Lagos state Government but all the statutory payments have been made.
7 Recently, we were approached by the Solicitors to the landlord (Olufemi Omotoso and Co) for an out of court settlement on the following terms;-
(a) Four years leasehold term effective from Jan. 2011 to Dec. 2014 to enable us move out of the premises.
(b) Pay the already agreed N1m per annum totaling N2m for the two years period effective Jan. 2011 to Dec. 2012.
(c) N2m per annum for another two years period with effect from Jan. 2013 to Dec. 2014 totaling N4m for the two years.
(d) From the foregoing, the total rent for the four years is N7m
(e) Pay N1.4m as legal and Agency fees at the rate of 10% each.
(f) Pay another N1m to offset the legal fees of the landlord’s Solicitors.
7 We were not comfortable with this offer and we made our counter offer of paying the already agreed N2m for the two years rent Jan.2011 to Dec. 2012, N3m at the rate of N1.5m yearly rent for another two years term Dec.2012 to Dec. 2014. Agency fees and Legal fees at the bank approved rate while each parties bear the cost of the legal suit. This counter offer was communicated since Feb. 2013 but we are yet to receive any feedback to date.
Above represents our submissions, we are however still open to further negotiations and discussions.
