DusitD2 is set to go under the hammer in a public auction. The auction will take place at the Heron Portico Hotel along Jakaya Kikwete road on January 8, 2022 from 11 am.
The hotel is part of a larger Mixed Use Development to be auctioned by Moran Auctioneers. The property sitting on 2.093 hectares also includes 5 commercial office blocks, a parking silo, a food court and garden among other areas.
DusitD2 was the reopened in 2019, weeks after it was the site of a terror attack.
A notice in local dailies on January 7, 2022 laid down the terms for participants looking to take part in the public auction. 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.
The auction is subject to exemption of leases for 4 units registered as Entry. no 27, 29, 31 and 35 against the title. Interested bidders must pay Ksh5 million as a refundable deposit to the decree holder a day prior to the auction time to obtain a bidding number.
Justice Alfred Mabeya had in a December 2021 ruling allowed Synergy Industrial Credit to auction the complex in which DusitD2 hotel sits, after dismissing an application by I&M Bank and its administrator seeking to hold up the sale on the basis that the company which owns the building owes them a debt of $25 million (Ksh2.82 billion).
Cape Holdings Ltd owns the development and has been locked in a dispute with Synergy since 2010 over a botched sale agreement.
Synergy paid Ksh750 million to acquire part of the development but the deal fell through and the matter ended up before an arbitrator, leading to an award of Ksh1.6 billion that has risen to Sh4.9 billion plus interest.
I&M Bank opposed the sale stating that the property was used as security for a Ksh2.82 billion loan. Synergy Industrial, howeer, accused the bank of negligence, stating that it had placed a legal restriction or caveat on dealings with property as it was subject to a dispute.
Justice Mabeya stated that the charge placed by the bank was designed to allow Cape Holdings evade its legal obligations.
“Taking into consideration the foregoing, the court can but only agree with the applicant’s contention that the timing of the administration was not meant for the purpose known under the Act,” he ruled.