Corporate

Nairobi’s Dusit D2 Property Owner Fights Auction in Court

The company accuses Synergy Industrial Credit Limited of illegally inflating a Ksh.700 million debt to Ksh.9 billion and violating auction rules by shortening the redemption period from 59 to 21 days.

Cape Holding Limited, owner of the multi-billion-shilling 14 Riverside Drive property housing the Dusit D2 hotel, has filed an urgent court case to block an auction scheduled for April 11, 2025.

The company accuses Synergy Industrial Credit Limited of illegally inflating a Ksh.700 million debt to Ksh.9 billion and violating auction rules by shortening the redemption period from 59 to 21 days.

Cape’s lawyer, Alln Gichuhi, argues the sale is unlawful due to expired warrants, lack of a reserve price, and no fresh valuation of the property’s six blocks. Director Vinaychandra Sanghrajka claims the real dispute is over Sh1.5–1.8 billion and that repeated auction attempts have scared off tenants, causing financial losses.

The case is complicated by a prior dispute with I&M Bank, which claims priority over the property due to a Ksh.2.82 billion loan, though a Court of Appeal ruling clarified the property isn’t legally charged to the bank.

Synergy, owed Ksh.5 billion since 2010, insists on proceeding with the auction, while Cape and the bank argue Synergy’s actions undermine legal and financial processes.

The 5.2-acre property near the University of Nairobi’s Chiromo Campus includes five office blocks, a five-star hotel, and other amenities.

Monitor Your Business Transaction

Lawrence Baraza

Lawrence Baraza is a dynamic journalist currently overseeing content at Metropol TV Digital. With a keen focus on business news and analytics, Lawrence guides the platform in delivering insightful, data-driven content that empowers its audience to make informed decisions. Lawrence’s commitment to quality and his ability to anticipate market trends make him a key figure in the digital media landscape. His work continues to shape the way business news is consumed, making a significant impact in the field.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button