Financially troubled real estate company Home Afrika’s subsidiary has gone into administration. Mitini Scapes Development Limited has gone into administration with Messrs Kamal Anantroy Bhatt and Dhir Kamal Bhatt of Anant Bhatt LLP appointed as the new administrators of the listed firm.
This subsidiary is part of the larger Migaa Golf Estate project in Kiambu County. The new developments come barely a month after Home Afrika revealed that it was trying to sell off some of its properties in order to pay off pending debts.
The company that is listed on the Nairobi Securities Exchange owes the I&M Bank Sh. 79 million. It also has outstanding debts with the Co-operative Bank and the NCBA Bank Group. To pay off this debt, the company will sell its assets including houses and land.
The company had stated that it would sell six houses that are located at its Mitini Scapes Development project along Kiambu Road and Lake View Heights in Kisumu.
“During the year ended December 31, 2023, the directors negotiated a final and full settlement with the bank (I&M) of Sh. 100 million and the group paid Sh. 22 million during the year, towards settlement of the loan balance,” Home Afrika had said.
Cost of building two bedroom house in Nairobi, Coast, Nyanza, Central regions
“The outstanding balance of Sh. 79 million will be repaid in the next financial year from proceeds realized from the sale of six housing units under Mitini Scapes Development Limited and the sale of 5 acres of land under Lake View Heights Limited in Kisumu.”
According to the company’s financials, Home Afrika owed I&M Bank Sh. 141.3 million in the financial year ended December 2022. This was brought down to Sh. 79 million in the financial year ended December 2023.
The loans taken by the real estate developer were secured by Sh. 1.3 billion worth of guarantors including a mortgage, debenture, and an indemnity corporate guarantee both personal and joint from the directors.
Home Afrika, which was the first real estate dedicated medium company to list on the NSE’s ‘Growth Enterprise Market Segment’ (GEMS), has been seen its fortunes turn sour over the past couple of years.
