What you need to know:
- The High Court issued an attachment order and sale of the hotel belonging to businessman Mohammed Hamid after defaulting on a loan he acquired from Industrial Development Corporation of South Africa.
Pearl of Africa Hotel, one of the five-star facilities in the country, is up for sale over outstanding debts worth more than Shs600 billion.
According to the notice published in the Daily Monitor newspaper yesterday, the hotel, located in the leafy Nakasero Hill outskirts, which is owned by Aya Investments, will go down the hammer on October 26, if the debt is not cleared.
“We shall proceed to sell the property below together with all developments thereon by public auction pursuant to a warrant of Attachment and Sale issued by the High Court of Uganda unless the judgment debtor pays to us the entire outstanding decretal sum (including interest) and our fees and costs before the fall of the hammer at the auction,” read in part the public auction notice.
The High Court issued an attachment order and sale of the hotel belonging to businessman Mohammed Hamid after defaulting on a loan he acquired from Industrial Development Corporation of South Africa.
The hotel spans 32,000 square meters and comprises 23 floors, 296 rooms, 37 suites, two restaurants, three bars, nine meeting rooms.
The facility, situated at an altitude of 1,240 meters above sea level, makes it one of the highest points with a 360-degree view of Kampala City.
Speaking to this publication on condition of anonymity, a lawyer from MMAKS Advocates representing the Industrial Development Corporation of South Africa, said they were reluctant to give chance to the settlement since Aya Investments had taken over a decade without honouring their outstanding loans.
“The debtor has never made any payments for more than 10 years since he received the money. Therefore, an amicable settlement would not be an option,” the MMAKs lawyer said.
Mr Gibson Munanura, the lawyer representing Aya Investments, in a telephone interview said his client had not yet instructed him to speak to the media.
“I currently have no directive instructions from my client to make comments on the matter, but as soon as I have, I will revert,” Mr Munanura said.
The South African entity sought legal redress to recover more than Shs600b, inclusive of interest and the principal sum, from Aya Investments.
This was after Aya Investments received a loan facility to construct the hotel in 2007.
Last Friday, High Court deputy registrar Catherine Agwero ordered the indebted businessman to table certificates of titles of the property.
“The application for execution of the judgment creditor in execution…. Is hereby granted and an order of attachment and sale of the following properties at Nakasero Hill Kampala, LRV 3556 Folio 8 plots 7A1-9A1 and 10 Lugard Road, and plots M32, M183, and 2E Nakasero Hill Road Kampala including all the developments is allowed,” ruled Ms Agwero.