The home of former Nakumatt CEO Atul Shah has failed to find a buyer due to its price
Auctioneers have blamed the general slowdown in the economy especially the real estate business
The palatial home was used as collateral in 2011 for KSh 25 million
No one has been able to afford the high-end home of Atul Shah, the former Chief Executive Officer of Nakumatt, which is currently in the hands of auctioneers. Auctioneers cannot find a buyer for the home of Nakumatt’s former CEO. Phillips International Auctioneers who are in possession of the Lavington-based palatial home over a KSh 2 billion debt told Business Daily that the general slowdown in the economy especially the real estate business is to blame.
The Auctioneers revealed that they had received numerous enquiries about the home, but did not meet their targets. “The amount we got was almost close to the sale value. This did not meet our targets and we had to reject it. We plan to float the house again for auction soon but in consultation with the bank,” the company said. PAY ATTENTION: Install our latest app for Android, read best news on Kenya’s #1 news app
As earlier reported by TUKO.co.ke , the palatial home was used as collateral in 2011 for KSh 25 million, which forms part of the multi-billion-shilling loans the retail giant took.
The four-bedroom villa includes a domestic servant quarter and a semi-permanent generator room.
According to Business Daily, interested bidders were required to pay a refundable fee of KSh 1 million to obtain a bidding number as well as a catalogue before the auction date.
The home’s buyer would also be required to deposit 25% of the asking price.
This is not the first time Shah’s properties have been actioned.
A year ago, for instance, the Bank of Africa auctioned his personal property worth KSh 2billion over loans attached to Nakumatt.The bank was given a go-ahead to auction property registered under the brand name Collogne Investments, to recover KSh 700million owed by the retailer.Nakumatt, once a giant local supermarket chain, had been operational for 30 years, before its collapse.As TUKO.co.ke previously reported, Nakumatt finally closed its doors in January 2020, leaving in its wake unpaid debts of KSh 30 billion; KSh 18 billion for suppliers, KSh 4 billion to commercial paper holders, and the rest as loans from banks.Some of the bank loans include DTB at […]