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Auctioneers have failed to find a buyer for a mansion belonging to former Nakumatt CEO Atul Shah.
The home located in Nairobi’s posh estate of Lavington was repossessed from Shah over a Sh2 billion debt and was put up for sale in July.
This was after the High Court dismissed a petition seeking to block KCB Group from selling the property to recover the debt.
Through Phillips International Auctioneers, the lender was set to sell the property valued at over Sh30 million on August 24th.
“The sale of 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 Business Daily.
“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.”
Prospective buyers were required to pay a refundable fee of Sh1 million to obtain a bidding number ahead of the August 24th auction date.
The four-bedroom house with servant quarters and a semi-permanent generator room was offered as security in 2011 and accounted for Sh25 million in the multi-billion-shilling loans given to Nakumatt.
Court documents indicate that KCB sold another of Shah’s prime property in Nairobi’s Industrial Area to Furniture Palace International Ltd for Sh1.04 billion.
By the time it closed shop in January 2020, Nakumatt had racked up debts totaling Sh30 billion, including Sh18 billion to suppliers, Sh4 billion to commercial paper holders, and the rest to banks.
The retailer owed DTB Bank Sh3.6 billion, Standard Chartered Sh900 million, KCB Sh1.9 billion, Bank of Africa Sh328 million, UBA Sh126 million, and GT Bank Sh104 million.
Comments
IPO would have saved this chain probably. It's sad how both Tuskys & Nakumatt had to close shop even after having expanded & crossed borders.
Poor management, lack of financial control, greed and heavy debt! Typical of African entrepreneurs failure to plan properly! They have difficulties building some lasting institutions like Walmart, Amazon, etc!
Plus what George says above I think govt should care and audit every big biz bc of effect of its fall on lives and the economy. These guys esp Indians don't invest profits in the biz. They run on suppliers merchandise. Suppliers lost more than them. Old school owners must learn to adapt to ever changing dynamics. I saw a young turk doing an Amazon i.e. delivery in villages 1990s. He obliterated old school shops. Now drives rav4 as a wholesaler.
Matiang’i must tell the MPs how jambazi Mwau used to launder drug billions through NAKUMATT.He should also inform them the protection fee amounts paid by each drug lord to him,Ruto,Uhuru,Raila.But Matiang’i should first tell them why some elite thugs including drug lords have bodyguards while Laikipia,Moro and Nakuru residents are at mercy of heavily armed gangsters.
The auctioneers should post the photo of the house here for the international community to see - make it virtual both inside and outside!
Shs 30,000, 000 is not a lot of money - roughly about USD $300,000.00
If you are in Kenya, or generate your shillings in Kenya, its alot of money.
Yes. They should be serous to sell ...put it online...pitch to the right target.... I think they are pulling our leg(s)... With all the wash wash money around.....beach houses worth hundreds of millions are flying off property lists like a joke.
Indians are very corrupt. This guy sank many SME suppliers... while investing his profits elsewhere. UK is their haven.
I think the author made a mistake. Sh30 million is kitu kidogo and I don't think properties in Lavi go for that cheap.