KCB Group has placed Pearl Beach Hotels, the firm that owns Mombasa’s luxury property English Point Marina, under statutory management over a Ksh5.2 billion debt.
“I can confirm that KCB bank has taken over English Point today(Tuesday, May 31, 2022),” a source at the Business Registration Services (BRS) told a local daily.
English Point Marina is owned by Amin Kanji, his wife Leila, brother Alnoor, sister-in-law Nafisa and Nazir Jinnah. The luxury property is located by the harbour, and consists of 96 apartments, eight penthouses and a 26-room hotel.
The receiver-manager is expected to sell part or all of English Point Marina to settle KCB’s debt which has taken years to repay. Despite several trials to restructure the debt, the owners of the luxury hotel have been unable to meen their financial obligations.
The administrative receiver is tasked with the duty to realise enough of the company’s assets to pay the debenture holder and where possible, other creditors too. The appointment of an administrative receiver automatically ends at the end of 12 months from and including the date on which it took effect.
KCB’s takeover of English Point Marina came after the developer fell out with buyers who claim they have not taken ownership of the houses they bought at a cost of Ksh600 million.
It is also reported that English Point Marina has blocked buyers from renting out their apartments, contrary to the purchase agreement in which the management undertook to assist in sub-letting in exchange for 30 percent of revenue collected.
The buyers who already own units will not be affected by the takeover.