Atul Shah Home Auctioning: Auctioneers are unable to find a buyer for the luxurious home of former Nakumatt chief executive officer Atul Shah. The home which is located in the Lavington area has been put up for sale as part of recovery efforts on a Sh. 2 billion KCB debt that was accumulated by Mr. Shah’s business.
According to a report that appeared in a local daily, auctioneers have blamed the lack of buyers on a slowdown in the economy. “The sale of Mr 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,” Philips International Auctioneers was quoted on the lack of buyers.
The home is a four-bedroom villa with a servants quarter and a semi-permanent generator room. It was offered as security in 2011 and accounted for Sh. 25 million in the multi-billion shilling loans.
The property known as LR No. 5/134 (IR No. 49802) can be identified as House number 3, which is located at Elite Gardens Estate in Muthangari. The title to the home is held on a leasehold interest for a term of 45 years with effect from September 1, 1989.
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According to the auctioning advert, prospective buyers were required to make refundable deposit of Sh. 1 million. This deposit would enable prospective buyers to get biding numbers. The successful buyer was to be required to deposit 25 percent of the asking price by bankers’ cheque by the close of business of the auction date. The balance would thereafter be payable within 90 days to the charges, failure to which auction deposit would be forfeited.
The sale of the home is just attempt at recovering loans Mr. Shah owes multiple lenders. According to regulatory filings before the court Mr. Shah’s Nakumatt owed DTB Bank Sh. 3.6 billion, Standard Chartered Sh. 900 million, KCB Sh. 1.9 billion, Bank of Africa Sh. 328 million, UBA Sh. 126 million and GT Bank Sh. 104 million.