[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 requesting S$77,724.18 for 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, the 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.
The letter, dated Jun 19, was addressed to NOC’s owner Lim Eng Lam and sent by Trident Law’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).
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Fees for continued use of the space would accrue at the rate of S$287.87 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 not paid CBA.
A case conference will take place on Thursday afternoon, with both parties and their solicitors required to attend.
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.
“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.
Smith Street used to house Chinatown Food Street, a 100-metre 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 had also proposed a meeting with CBA on Jun 23 “to resolve the matter amicably”, but this did not materialise.
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’s Wu, while NOC will represent itself. Lim said he is currently looking to engage a lawyer.
