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CNA
26-06-2025
- Business
- CNA
Chinatown Business Association sues Nanyang Old Coffee for over S$77,000 in backdated rent for outdoor area
SINGAPORE: The Chinatown Business Association is seeking more than S$77,700 (US$61,000) in backdated rent from Nanyang Old Coffee over its use of an outdoor dining area. The space in question is a sheltered walkway outside Nanyang Old Coffee's flagship outlet, located at the intersection of Smith Street and South Bridge Road. The cafe has set up tables and chairs for its customers in this area, which is now at the centre of a legal dispute. According to a lawyer's letter seen by CNA, the Chinatown Business Association is claiming S$77,724.18 in rent, backdated to Oct 1, 2024, with a monthly rate of S$8,636.02. The association, a non-profit entity comprising business and community representatives, won the tender to manage the Smith Street shophouses in 2024. In a statement, the Chinatown Business Association said it first engaged Nanyang Old Coffee in October 2024 after taking over management of the area. "Unfortunately, our repeated attempts to reach out and follow up were consistently ignored," it said. "Despite multiple attempts to resolve the matter amicably, including a formal letter requesting the removal of furniture and potted plants from the outdoor dining area, the unauthorised use of the space has continued, even so, as of Jun 22. "As such, the Chinatown Business Association has had to take the necessary steps to address this issue," it added. The association said it had offered to sublet the space to Nanyang Old Coffee founder and manager Lim Eng Lam, but the offer was not taken up. It said it followed up with Mr Lim three more times in February and March 2025 "but these attempts were ignored". The association added that it was not restricting the cafe's business operations, nor compelling it to become a tenant. However, it stated that rent is required for the use of the space, as was "required of all other tenants". Mr Lim confirmed that the association had been in touch with him over the issue since October last year. He told CNA he disagreed with the rental demand and had sought clarification from the authorities regarding the rent issue. Chinatown Business Association said any proceeds from the lawsuit would be donated. A case conference between both parties was held at the State Courts on Thursday (Jun 26), where both parties were to discuss the matter.
Business Times
26-06-2025
- Business
- Business Times
Chinatown Business Association seeks over S$77,700 in backdated rent from Nanyang Old Coffee for outdoor refreshment area
[SINGAPORE] The Chinatown Business Association (CBA) is seeking more than S$77,700 in backdated rent from heritage cafe Nanyang Old Coffee (NOC) – for the use of an outdoor refreshment area (ORA). At NOC's flagship outlet at the junction of South Bridge Road and Smith Street, additional tables and chairs have been placed at the walkway outside the unit for years. CBA is now seeking backdated rent of S$77,724.18 for the use of this space since October 2024, according to a lawyer's letter seen by The Business Times. This is at a rate of S$8,636.02 a month. This is after, in August 2024, CBA won a tender to refurbish and transform the row of shophouses from 11 to 37 Smith Street, as well as the adjacent pedestrian state land. The letter, dated Jun 19, was addressed to NOC's owner Lim Eng Lam and sent by Trident Law Corporation's Andrew Wu, who represents CBA. NOC was asked to pay the backdated rent; remove items that have encroached onto the space; and pay legal costs of S$5,500, all by 5 pm on Monday (Jun 23). A NEWSLETTER FOR YOU Tuesday, 12 pm Property Insights Get an exclusive analysis of real estate and property news in Singapore and beyond. Sign Up Sign Up Fees for the continued use of the space would accrue at the rate of S$287.97 per day, added CBA. The association said it would take further steps 'to best protect its interests' if NOC did not comply. As at Jun 23, NOC had removed the furniture but had not paid CBA. A case conference will take place on Thursday afternoon, with both parties and their solicitors required in attendance. Additional tables and chairs have been placed at the walkway outside Nanyang Old Coffee's shophouse unit for years. PHOTO: LIM ENG LAM CBA is a non-profit organisation that serves and promotes the business and community interest of stakeholders in Chinatown, according to its website. The tender which it won last year was jointly launched by the Singapore Land Authority (SLA), Urban Redevelopment Authority and Singapore Tourism Board. 'Repeatedly ignored' engagement efforts In response to queries from BT, a CBA spokesperson said the association began engaging NOC in October 2024 to discuss the ORA, but NOC 'repeatedly ignored' follow-up efforts. 'Despite multiple attempts to resolve the matter amicably, including a formal letter requesting the removal of furniture and potted plants from the outdoor dining area, the unauthorised use of the space has continued, even so, as of Jun 22, Sunday,' the spokesperson said. 'As such, CBA has had to take the necessary steps to address this issue.' According to a separate 121-page court document seen by BT, CBA had e-mailed SLA on Dec 24, 2024 to confirm if it could charge for the use of the ORA. SLA replied on Dec 26 that the space did fall within CBA's tenanted boundary and that the association may charge for its use. CBA then offered to sublet the space to Lim, but the latter did not take up the offer. On May 30, CBA filed an originating application – the first step in commencing legal proceedings – to the State Court, ordering NOC to remove all its furniture from the ORA within 28 days and pay incidental legal fees. The CBA spokesperson told BT that the association was neither restricting NOC from continuing its operations, nor 'compelling' it to become CBA's tenant. However, NOC will need to pay rent for the ORA, 'as is required of all other tenants'. Any proceeds would be donated to support 'the poor and needy' in the Chinatown community, the spokesperson added. In August 2024, Chinatown Business Association won a tender to refurbish and transform the row of shophouses from 11 to 37 Smith Street, as well as the adjacent pedestrian state land. PHOTO: PAIGE LIM, BT 'No lease' with CBA Speaking to BT, Lim said it was 'inappropriate and premature' of CBA to claim backdated rent and legal costs, as NOC has no lease agreement with the association. Lim also argued that the legal and territorial status of the ORA was unclear, as NOC had placed tables, chairs and potted plants in the area for 15 years without issue. 'The alfresco area currently in dispute has been used consistently over this time, just like the other businesses on Smith Street and Sago Street, many of whom have similarly made use of the street frontage for decades,' he said. Nanyang Old Coffee's owner Lim Eng Lam said it was 'inappropriate and premature' of CBA to claim backdated rent and legal costs, as NOC has no lease agreement with the association. PHOTO: BT FILE Smith Street used to house Chinatown Food Street, a 100m stretch of hawker carts that closed in October 2021 during the pandemic. The venue had been managed by food and beverage operator Select Group since 2014. Lim said Select Group had 'never claimed ownership or control' over its ORA, nor imposed rental fees or 'attempted to regulate this space in such a manner'. CBA's actions are thus inconsistent with precedent, he said. He added that CBA provided only a 'faint, undetailed map' when asked for proof of its ORA ownership, and refused to provide a copy of their lease with SLA. In addition, CBA's subtenancy offer for the ORA space was only for business owners who met two conditions: holding a valid tenancy agreement for the ground floor unit, and having obtained written consent from their shophouse landlord to rent the ORA space. NOC leases three floors of the shophouse from Yau Shing Land Investment, a real estate player headquartered in Hong Kong. Lim said he had informed CBA that entering a rental arrangement with the association would be in conflict with NOC's existing tenancy agreement. He argued that the association's behaviour was at odds with its aim to 'enhance Chinatown's business environment and promote the welfare of businesses'. 'The current conduct suggests a focus on commercial gain at the expense of existing heritage stakeholders, which runs counter to that mission,' he said. Lim requested CBA to pause all enforcement action 'until the rightful status and authority over the space' is confirmed by SLA and its landlord. He also asked for any rental arrangement 'to be subject to a clearly documented, mutually agreed contract' and for CBA to enter 'into a meaningful and transparent discussion, in good faith.' At Thursday's case conference, CBA will be represented by Trident Law Corporation's Wu, while NOC will represent itself. Lim said he is currently looking to engage a lawyer.
