OKC Attorneys Serve Termination Notice On County Estates Over Breach Of N2.9 Billion Fundamental Terms Of Ikoyi Property Sublease

OKC Attorneys Serve Termination Notice On County Estates

 

OpenLife News reports that OKC Attorneys,  a Lagos law firm that specializes in litigation, arbitration, commercial law, legal advisory and notary public services  have served a notice of termination on County Estates Limited, ending its lessee interest in a prime property at No. 10, Macpherson Avenue, Ikoyi, Lagos, over alleged breach of fundamental terms valued at N2.9 billion under a sublease agreement.

The property, known as Plot 1, Section S.E, South-East, Ikoyi with Title No. L03350, is part of the Estate of Cletus Victor Kwaku.

The 1998 Sublease Agreement

According to OKC Attorneys, in 1998 the beneficiaries of the Estate, represented by the Executors, executed a Deed of Sublease for a term of 35 years with a 1-year construction period. The lease was granted to County Estates Limited.

Key fundamental covenants included:

{A} Payment of prevalent annual rent for 2 units of four-bedroom flats due to the Executors and Beneficiaries

{B} Payment of the balance of N5 million for the premium due on the property.
{C}Compliance with approved building plans and standard specifications

Alleged Breaches: Extra Units, Unpaid Rent, Unpaid Premium

In a letter dated Friday, March 28, 2025 addressed to Mr. Gbolahan Balogun, Managing Director, County Estates Limited, OKC Attorneys alleged multiple breaches.

The firm stated that while the agreement was for County Estates to construct 8 units of four-bedroom flats, with 2 units due to the Estate, the company allegedly constructed 10 units of 4-bedroom maisonettes. When confronted, County Estates reportedly insisted the Estate could not get more than 2 units except the sublease term was extended.

OKC Attorneys further alleged:

“Your company only paid our clients part of the rent due for two years in respect of the 2 units they were entitled to, as the amount paid was far below the prevailing rent for similar properties in the location at that time.
Also, your Company has not paid the outstanding balance of N5 million due on the premium for the property.”

By the Estate’s reckoning, County Estates owes rent for 26 years, from 2000 to 2025. At prevailing market value, the total outstanding rent, plus accrued interest on rent and premium, is put at N2,957,378,716.33.

Demands In Termination Notice

OKC Attorneys, signed by Oluwole Kehinde, said the breaches were “brazen and defiant” and left the Estate with no option but to terminate the sublease.

The firm demanded immediate surrender of the entire property at No. 10 Macpherson Avenue, Ikoyi
and payment forthwith of N2,957,378,716.33 being outstanding rent plus accrued interest on rent and premium

“Kindly Note that our clients may be constrained to take legal action to enforce their rights against your Company unless your Company complies with the foregoing demands within fourteen (14) days of the service of this letter.

“Nevertheless, our clients are not averse to an amicable settlement of the matter in the spirit of Alternative Dispute Resolution (ADR),” the letter stated.

Public Notice To Tenants And Banks

The Estate also issued a public notice warning that County Estates “no longer has any authority to collect rents, manage the property, issue receipts, grant tenancies, or in any manner act on behalf of the Lessor.”

The notice, referring to the property now known as “Macpherson MEWS”, No. 12, Macpherson Avenue, Ikoyi, advised tenants and financial institutions to desist from making payments to County Estates.

“All rents and dealings relating to the property should henceforth be made only to the Lessor or their authorised representative, OKC ATTORNEYS.
THIS NOTICE is issued in good faith and for the avoidance of doubt.”