Auction of Dusit D2 complex set for February 8

NAIROBI, Kenya Jan 7-Auctioning  of a prime property at Nairobi’s 14 Riverside Drive comprising of commercial office blocks and the Dusit D2 hotel is set to commence on February 8, a public notice issued on Friday has indicated.

The property is set to be auctioned over a Sh5 billion debt in a long-running dispute with Synergy Limited which owns the building. The debt has been outstanding since 2010.

Moran auctioneers while citing a court order which dismissed an application seeking to stop the process. said all interested bidders are requested to view the property and verify the details for themselves as they are not warranted by them.

“Interested bidders must pay Sh5million as a refundable deposit. 25 percent of the purchase price must be paid upon the fall of the hammer and balance paid within 60 days,” read a public notice from the auctioneer.

Justice Alfred Mabeya’s ruling delivered on December 10 gave Synergy Industrial Credit permission to auction the prime property.

The judge dismissed an application by I&M Bank and its administrator, seeking to stall the sale arguing that the company, which owns the building owes them a debt of Sh2.82 billion.

The mixed development property comprises five office blocks, a five-star hotel with s swimming pool, a parking silo, food court, and cafeteria.

It is situated off Riverside Drive due North of the University of Nairobi’s Chiromo Campus.

According to the auctioneers, the development shall be sold either as a whole or based on blocks/offices to a single buyer or multiple buyers for those interested to buy blocks or floors.

Cape Holdings Ltd, which owns the complex has been embroiled in a dispute with Synergy since 2010 over a botched sale deal.

The dispute revolved around a transaction in which Synergy bought two of the blocks out of 14, which were under construction and paid Sh750 million upfront.

When the property was completed, Cape Holdings refused to transfer the property and the matter was referred to arbitration.

Synergy Industrial Credit is owned by Vipul Shah, a Nairobi-based businessman while Cape Holdings is owned by the Sanghrajka family–owners of Tile & Carpet and Dusit D2 hotel.

In court documents, Synergy Limited says it paid Sh750 million to acquire part of the complex but the sale did not materialise as it was referred to an arbitrator, hence an award of Sh1.6 billion that has since accumulated to Sh4.9 billion with interest.