Property war rages on plush Atlantic seaboard

THE gloves are off as Cape Town's top estate agents fight a bruising war over control of South Africa's platinum property strip.

The Atlantic seaboard, from Cape Town's V&A Waterfront to Hout Bay, is home to the world's rich and famous. Two months ago, a bungalow on Clifton's Second Beach fetched R115000/m².

But tension is simmering in the immaculately manicured property belt, according to a flurry of legal documents filed in the High Court in Cape Town.

Lew Geffen, founder of Lew Geffen Sotheby's International Realty Franchises, staged what his rivals have called a "hijacking" of their business.

Hugo Jankowitz and Rob Stefanutto have been running the Lew Geffen Sotheby's Atlantic seaboard franchise since 2007. Now Geffen has accused them of secretly buying into a leading competitor, Dogon Group Properties, in a blatant conflict of interest.

Geffen launched an urgent application to cancel the franchise agreement in the high court.

An affidavit by Jason Rohde, CEO of Geffen International Realty Franchises, accused Jankowitz and Stefanutto of turning down an offer from businessman Farouk Akoojee to buy their franchise for "no apparent reason other than the fact that Akoojee is of the Muslim faith". This was because their clients were "largely Jewish".

Then he and the court's sheriff marched into Stefanutto's office and seized records, data and computers.

Stefanutto and Jankowitz returned to court, which ruled that their possessions be returned.

In his affidavit, Stefanutto revealed details of an e-mail he received from Sandy Geffen inferring that he and his staff were "disgusting pigs" who deserved to be spoken to like "hogs".

He also claimed Lew Geffen sent him an SMS in April 2010 complaining that he did not employ enough Jewish estate agents.

In an interview this week, a despondent Jankowitz said: "It took four days for our entire business to be shredded. We have no agents, no reputation, no brand. How is this possible? I am confused over the country's legal process.

"Our books and records were returned to us in two plastic bags, dumped outside our offices."

Jankowitz, a former computer scientist whose towering mansion, known as The Castle, in Nettleton Road, was put on the market for R90-million, insists that no conflict of interest existed between the Lew Geffen Sotheby's Atlantic seaboard franchise and Dogon Group Properties.

Atlantic seaboard property doyenne and Dogon Group Properties founder Denise Dogon declined to comment.

Geffen is also launching a R3.5-million damages claim against Jankowitz alleging breach of the franchise agreement.

He announced this week that the Atlantic seaboard franchise would be relaunched under new management by Dogon's former business partner, Gail Gavrill.

"We are confident that the franchise will now come into its own and deliver," said Geffen.

Property valuation experts from the Knowledge Factory said the recession had hardly dented the Atlantic seaboard.

"The suburbs along this beautiful part of South Africa remain sought after, irrespective of economic conditions, by both local and international buyers. These suburbs reflect high income levels, leafy suburbs, a relaxed lifestyle. This is South Africa's own little Monaco," said Dieter Deppisch. "Nettleton Road was the top performer last year, with three transactions above R30-million and one an eye-watering R60-million."