Commerce

KCB seizes iconic English Point Marina over Sh5b debt

Thursday, June 2nd, 2022 12:13 | By
PHOTO/Courtesy

English Point Marina has been seized by KCB over Sh5.2 billion debt barely 10 years after its ceremonious launch in 2013, joining the growing list of multibillion shilling projects that have failed to live up to their vision due to huge debts.

The high-end property, which is owned by Pearl Beach Hotels, had defaulted and severally failed to meet loan restructuring measures placed by KCB, according to reports by local dailies. A receiver-manager has consequently been appointed to oversee the selling of the property to raise funds to settle the arrear.

Other lenders are also expected to be apportioned the proceeds per the Insolvency Act of 2015. Purchased units will not be affected by the KCB takeover if the buyers have been serving their purchases.

Racism claims

Until its receivership, the property which is partly owned by the Alnoor Kanji family, had also been battling a court case over claims of blocking its buyers from sub-letting the units and racism claims. High Court judge John Mativo gave the Directorate of Criminal Investigations (DCI) a greenlight in March to probe English Point Marina over alleged theft, frustrations, and fraudulent service charges that led to a fallout with its 12 buyers. Among them was Rockefeller Foundation Africa boss William Asiko.

“The apartment owners are required to serve an earlier notice to the management before visiting their apartments,” court papers read in part. By the time of its launch, 30 apartments and four penthouses had been sold.

English Point Marina is a private project constructed by UK-based architects and was nominated as one of the vision 2030 flagship projects. It boasts 96 apartments, eight penthouses and a 26-room hotel.

Mounting debts

Other properties that have previously been trapped under receivership due to mounting debts include  Jacaranda Hotel which owed GT bank Sh257.6 million, multimillion-dollar Kaluworks Ltd owned by Comcraft Group was placed under receivership in 2021 over Sh4.3 billion debt owed to NCBA Group.

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