- An auctioneer has put up for sale a prime property on Nairobi’s Riverside Drive where the famous Dusit D2 hotel stands, over a debt of Sh5 billion.
- The auction to be held Saturday by Moran Auctioneers comes after Cape Holdings ltd, the owner of the property, failed to pay Synergy Industrial Credit Sh4.2 billion plus interest after losing an 11-year- court battle.
An auctioneer has put up for sale a prime property on Nairobi’s Riverside Drive where the famous Dusit D2 hotel stands, over a debt of Sh5 billion.
The auction to be held Saturday by Moran Auctioneers comes after Cape Holdings ltd, the owner of the property, failed to pay Synergy Industrial Credit Sh4.2 billion plus interest after losing an 11-year- court battle.
The property known as 14 Riverside Drive near University of Nairobi’s Chiromo Campus sits of on a5.2 acre parcel of land and comprising of five office blocks, a five star hotel (Dusit D2) with a swimming pool, a parking silo, food court and cafeteria.
It also has a garden sitting arrears and a high security gate house with backup generators. The office blocks each comprise of ground floor to six floors. The ground floors have banking halls, shops, while the hotel has seven floors with 101 rooms and suites.
The hotel has a bar, restaurant, library, meeting rooms and a gym and amenities including a spa, swimming pool and an open air restaurant. The parking silo can accommodate 625 vehicles with an additional 34 parking bays.
An advertisement put in the newspaper yesterday stated that the property will be sold either as a whole or based on blocks or offices to a single or multiple buyers.
“Bidders must place a deposit of Sh5 million and must pay 25 per cent of the purchase price at the fall of the hammer and the balance should be cleared within 60 days,” the advertisement read.
Last month, Justice Alfred Mabeya allowed Synergy Industrial Credit to auction the complex after dismissing an application by I&M Bank and its administrator, seeking to stall the sale arguing that the company, which owns the building owes them a debt of USD25 million (Sh2.82 billion).
Cape Holdings ltd has been embroiled in a dispute since 2010 over a botched sale deal with Synergy saying it paid Sh750 million to acquire part of the apartments but the deal fell through and the matter was referred to an arbitrator.
In 2015, the arbitrator, James Ochieng Oduol ordered the developer to refund the principal amount and interest totaling Sh1.66 billion.
Cape Holdings then moved to the High Court and convinced the court to quash the award, saying it was erroneous.
Synergy then moved to the Court of Appeal and the award was restored while attempts by Cape Holdings to move to the Supreme Court and reverse the decision was dismissed by the apex court.
Synergy through Senior Counsel Ahmednasir Abdullahi then moved to the High Court seeking to be allowed to auction the property and recover its money but Mr Vruti Shantilal Shah, who was appointed the administrator by the lender opposed the planned sale saying the company was placed under administration.
The Judge said the bank would not suffer prejudice because it has other securities whereas stopping the sale would subject Synergy to irreparable loss since its bid to recover the money would be delayed.
“The court has considered the foregoing and the fact that it has not been shown that the amount to be realized from the sale of the suit property would not be enough to offset both the decretal amount and a substantial amount part thereof remain for the bank,” Justice Mabeya said.