A prime land belonging to Diamond Property Merchants is set to be auctioned. This follows the default on a loan from the Consolidate Bank by the real estate company. The company is owned by Tigania East MP Josphat Gichunge.
On Monday, Leakey’s Auctioneers advertised that the 28-acre freehold land located on Kangundo Road, Machakos, is up for sale.
An official at Leakey’s Auctioneers is reported saying that they intend to sell the property to recover the money that the investment company owes the bank.
“The property will be sold as a block but not as subdivided plots to recover the money Diamond Property Merchants owes to Consolidated Bank. For now, I am not in a position to disclose how much they owe to the bank because of the bank-client privacy issues,” the official was reported on Wednesday by the Business Daily.
The move risks exposing hundreds of buyers, who had purchased the land and were planning to put up houses, to major losses.
Over the recent past, the company was caught up in controversy over its green house projects that promised investors guaranteed returns upon purchasing of plots.
In 2016 though, Diamond Property Merchants was crowned the winner of the ninth edition of the Business Daily -KPMG’s Top 100 Mid-Sized Companies’ annual survey.