After a botched sale deal, Dusit D2 is set for February auction date
After a botched sale deal, Dusit D2 is set for February auction date
14 Riverside, the prime mixed-use property in Nairobi that is popularly known as Dusit D2 is set for auction on February 8.
The auction follows the acquisition of an order of execution by attachment of the property from the High Court by Synergy Industrial Credit on Wednesday, this week.
In December, Synergy got the nod to auction the investment to help recover Kes4.9bn owed to it by Cape Holdings Ltd (under administration) over a botched 2010 sales deal following the quashing of an application by I&M Bank, which also placed a claim on the 2.093-hectare property
The complex comprises five commercial office blocks with a ground floor and six flours each.
The complex also hosts a five-star hotel, Dusit D2, that features 101 rooms and suites in a seven-story block.
Read also: Ill-fated Dusit complex deal that led to Sh5 billion debt, auctioneer’s hammer
The ground floors of various office blocks include banking halls, shops among others.
In a notice to the public, the auctioneers have advised bidders to pay Kes5 million refundable deposit so as to participate in the auction whereupon the winner will pay 25 percent of the price upon fall of the hammer. The balance shall be paid within two months.
The dispute started in 2010 when Cape Holdings entered into an ill-fated agreement to buy two of the 14 blocks in the complex with Synergy at roughly Kes700 million.
On completion of the construction, however, Cape Holdings regened on its legal obligation to transfer the ownership of the purchased blocks to Synergy.
Aggrieved by the turn of events, Synergy took the matter before an arbitration panel led by Mr Ochieng Oduol in 2015.
In his determination, Mr Oduol ordered Cape Holdings to refund the principal amount invested by Synergy plus interest, which amounted to Kes1.6 billion at the time.
Dissatisfied with the outcome, Cape Holdings moved to the High Court and saw the Kes1.6 billion compensation award dismissed.
Later, the matter went to the Court of Appeal where Synergy managed to get their award restored. Cape Holdings later lost the battle in the Supreme Court.
“We reiterate our holding, and find the court lacks jurisdiction to entertain this appeal, having found so, we have no hesitation in declaring the application before us one for dismissal,” Supreme Court judges CJ Martha Koome, Mohammed Ibrahim, Smoking Wanjala, Njoki Ndungu, and Isaac Lenaola ruled.
