{"id":13359,"date":"2020-08-25T20:03:09","date_gmt":"2020-08-25T20:03:09","guid":{"rendered":"https:\/\/www.africa-press.com\/kenya\/?p=13359"},"modified":"2020-08-25T20:03:09","modified_gmt":"2020-08-25T20:03:09","slug":"banks-fight-over-nakumatt-estate","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/kenya\/all-news\/banks-fight-over-nakumatt-estate","title":{"rendered":"Banks fight over Nakumatt estate"},"content":{"rendered":"

AfricaPress-Kenya:<\/strong> A showdown is looming after the Sh2 billion Nakumatt head office charged to four banks was yesterday put on auction by one of the lenders.<\/p>\n

Last week, Bank of Africa won the claim to the property in court, seeking to sell it and recover a Sh700 million loan advanced to the\u00a0collapsed supermarket chain.\u00a0The other lenders charged to the property include Stanchart, KCB and Diamond Trust Bank. A source familiar with the matter said Stanchart has the first charge with the rest having a second charge.<\/p>\n

All combined are owed at least Sh8 billion but have failed to agree on the sale of the\u00a0property\u00a0for over a year, arguing over the sharing of the monies. The property\u2019s Sh2 billion valuation is estimated to have gone down owing to a property slump in the recent years, and only worsened by the Covid-19 pandemic.<\/p>\n

\u201cThe lenders are each shooting in a different direction without having a concerted effort on the property,\u201d said the source anonymously.\u00a0Nakumatt\u2019s Chief Executive Atul\u00a0Shah\u00a0through his firm Collogne Investment Ltd, used the head office as security to secure\u00a0loans\u00a0from multiple banks. In the court papers, Mr Shah tried to block the sale by Bank of Africa,\u00a0arguing that other creditors stand to lose their security.\u00a0Keysian Auctioneers said that the property, which has a 99-year leasehold, offers an annual \u201crevisable\u201d rent of Sh220,000.<\/p>\n

\u201cUnder instructions from our principals, the charges, in exercise of their statutory power of sale, we shall sell by public auction the under mentioned properties and all the improvements erected thereupon,\u201d said the auctioneers in a public notice of the sale slated for September 25.<\/p>\n

Sitting on 10 acres, the property is off Mombasa Road and not only has an administration office block but also a football pitch, tennis court and parking bays. The administration office block is a two-wing three storey building. It also has warehouses, meeting block, call centre block and a garage as well as a laundry room.<\/p>\n