Hotel Lazinos whose reserve price has been set at Sh250 million will be sold under a private treaty sale.
The property was earlier in February put up for auction over a debt owed to a local bank.
On Thursday, however, the hotel owner told the Business Daily, he was selling the property to raise funds for another project.
Housing Finance (HF) has inked a deal with a Nairobi-based businessman to sell his Hotel Lazinos, a popular bar and restaurant with accommodation facilities in Nairobi West.
The property whose reserve price has been set at Sh250 million will be sold under a private treaty sale without recourse to an auction process.
“The asking price is Sh250 million,” said Nairobi businessman and Lazinos owner David Njuguna and HF on Thursday in a joint advertisement placed on local dailies announcing the sale.
The property was earlier in February put up for auction over a debt owed to a local bank.
In a notice, Garam Investments had then invited interested buyers to bid for the multi-storey building at a public auction of the hotel set for March 5 in Westlands.
At the time, the auctioneer did not disclose, which lender was seeking to sell the property or the amount owed but said the business has an estimated rental income of Sh3.5 million a month.
On Thursday, however, the hotel owner told the Business Daily, he was selling the property to raise funds for another project.
However, we could not immediately obtain details from the bank on the fresh sale transaction as executives cited client confidentiality.
New Lazinos
Mr Njuguna said proceeds from the sale would be channelled to fund the completion of another multi-billion hotel project.
“I am developing a 70-bed hotel in Nairobi’s Upper Hill targeting medical tourism. It will be known as Lazinos. It is 70 percent complete,” said Mr Njuguna in an interview.
“We are therefore raising funds to complete the UpperHill project. The whole project is expected to cost Sh2 billion and proceeds from this sale will be used to finish off the project in Upper Hill, which we target to open by mid next year.”
The attempted auction of the establishment advertised in March was the second time the property had been put under the auctioneer’s hammer following a similar plan in 2016.
The facility located on Gandhi Avenue off Lang’ata Road, is popular with Nairobi West revellers.
The prime commercial property has four-floors with two wings and 43 self-contained guestrooms. It also has conference halls, shops, laundry and salon units.
Hotel Lazinos is registered under Turitu Service Station and sits on 0.1791 acres of land.
The sale of the property comes as the number of properties going under the hammer or businesses crippled by mounting debt has risen sharply in recent months.
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