Simbamanyo loses another property over bank loan
Simbamanyo House in Uganda's capital, Kampala. PHOTO /COURTESY
What you need to know:
- Simbamanyo Estates had petitioned the Court of Appeal seeking orders to maintain the status quo stopping the sale of their property by Equity Bank which is seeking to recover loans worth $10.8 million (more than Shs40 billion).
Simbamanyo Estates Limited has lost another prime property over failure to pay an Equity Bank loan worth $10.8 million (Shs40 billion).
The same estate lost Simbamanyo building, which houses the Gender ministry in Kampala, to the Equity Bank two weeks ago.
The latest property is Afrique Suites, a four-star hotel on Mutungo Hill, Nakawa Division, Kampala, which was auctioned and sold by the bank at $4.3m (Shs16b) on October 8. The hotel was one of the properties given as collateral to Equity Bank to secure $10.7m (Shs40b) in 2017.
Luwaluwa Investments Limited, a real estate firm, has taken possession of the property after purchasing it from the bank.
Documents show that Luwaluwa Investments bought the property from the bank on the same day Meera Investments Limited owned by Mr Sudhir Ruparelia bought Simbamanyo building on Lumumba Avenue.
The two properties, Simbamanyo building and Afrique Suites, were sold by public auction by the Equity Bank after court dismissed pleadings in which the proprietors of Simbamanyo Estates Limited had sought to stop the sale.
When contacted, the director of Luwaluwa Investments Limited, Ms Clare Luwangula, confirmed the transaction but could not divulge details.
“We do not transact our business in the media,” Ms Luwangula said yesterday before hanging up.
On Friday, Simbamanyo Estates through its lawyers withdrew an application in which it had sought to temporarily stop the sale and takeover of its properties pending their appeal.
Simbamanyo Estates had petitioned the Court of Appeal seeking orders to maintain the status quo stopping the sale of their property by Equity Bank which is seeking to recover loans worth $10.8 million (more than Shs40 billion).
They were seeking to halt a High Court order that required them to pay 30 per cent of the outstanding loan amount worth Shs12 billion.
When the matter came up for hearing before Justice Christopher Madrama, Simbamanyo Estates lawyer Robert Friday Kagoro told the court to allow withdrawal of the case reasoning that it had been overtaken by events.
Equity Bank lawyers Sim Katende and Frederick Mpanga asked the court to order Simbamanyo Estates to pay them legal costs incurred by the bank.
