Auctioneers have failed to find a buyer for a high-end home repossessed from former chief executive officer of the fallen retail giant Nakumatt, Atul Shah over a Sh2 billion debt.
The home located in Nairobi’s Lavington was put up for sale in July, barely three months after the High Court dismissed a petition seeking to overturn the forced sale by KCB Group to recover the debt.
“The sale of Mr Atul’s house did not happen last month although we received numerous enquiries. We attribute this to a general slowdown in the economy especially in the real estate business,” a representative of Phillips International Auctioneers told the Business Daily yesterday.
“The amount we got was almost close to the sale value. This did not meet our targets and we had to reject it. We plan to float the house again for auction soon but in consultation with the bank,” he added.
The Lavington home was offered as security in 2011 and accounted for Sh25 million in the multibillion-shilling loans.
The property known as LR No. 5/134 (IR No. 49802) is easily identified as House number 3 located at Elite Gardens Estate in Muthangari.
The title is held on a leasehold interest for a term of 45 years with effect from September 1, 1989.
The property is a four-bedroom villa with a domestic servant quarters and a semi-permanent generator room.
The auctioneer was demanding that interested bidders should pay a refundable fee of Sh1 million to obtain a bidding number and catalogue before the auction date.
The declared purchasers must also deposit 25 percent of the asking price by bankers’ cheque by the close of business of the auction date.
“The balance will thereafter be payable within 90 days to the charges, failure to which auction deposit will be forfeit,” said the auctioneers last month.
Nakumatt, which grew from a mattress shop in a rural town to have branches across Kenya and East Africa, was forced to shut down last year as it struggled to repay its suppliers and landlords.