REIZ shareholders remain on caution as Lewanika Mall Court dispute drags on

Real Estate Investments Zambia Plc (REIZ) has […]

Real Estate Investments Zambia Plc (REIZ) has maintained its cautionary position to shareholders as a legal dispute connected to Lewanika Mall continues before the Court of Appeal.

According to official information made available to Zambian Business Times-ZBT, there has been no material change in the matter since its previous update, with the appeal against the High Court judgment of 9 December 2024 still ongoing.

 The case involves Cavmont FMO Corporation Limited, Forli Limited, the former owners of Lewanika Mall, and the City of Lusaka Football Club. The dispute stems from a legal action filed by a trustee of the City of Lusaka Football Club, who alleged that Cavmont FMO Corporation Limited increased the club’s share capital, made changes to its directorship and sold a shareholding to Forli Limited without the club’s consent.

 The matter was heard by the High Court, with Justice S. Chocho delivering judgment on 9 December 2024. The judgment was partly in favour of the trustee, with the court finding against Cavmont in relation to the alleged failure to follow internal company procedures and reversing actions dating back to 1999/2000.

However, the court also held that the trustee and the football club could not be unjustly enriched. The judgment directed that Forli Limited be restituted (compensated) for developments made on the club’s property, with the club and its members ordered to pay 10% of the development costs to Forli, while Cavmont was directed to meet the remaining 90%, alongside damages and costs.

The matter became significant for REIZ because the company acquired Lewanika Mall in 2023 for approximately US$26.7 million.

Following the High Court judgment, Cavmont FMO Corporation Limited and Forli Limited appealed the decision, arguing, among other things, that the trial court had failed to properly consider the evidence.

The appeal was filed at the Court of Appeal on 11 December 2024. On 31 March 2025, the Court of Appeal granted ex parte orders staying execution of the High Court judgment pending determination of the appeal.

The information received further, indicates that 2 May 2025, Justice Justin Chashi formally granted a stay of execution of the 9 December 2024 judgment pending the outcome of the appeal.

REIZ says there is currently no immediate impact on the operations of Lewanika Mall or on the company’s business. Zambian Business Times-ZBT, reached out to REIZ Company Secretary Louis Pulu for clarification on the due diligence conducted before the company acquired Lewanika Mall in 2023, including whether the company had identified any legal or ownership risks relating to the Forli, Cavmont FMO Corporation and City of Lusaka Football Club dispute.

ZBT also sought responses to other questions regarding REIZ’s potential financial and legal exposure, the implications of an unsuccessful appeal and the current status of the proceedings. In response, Mr. Pulu failed to give a comment on the matter noting that the issue was outside his mandate as it deals with a case in court.

By Carol Sichone