A hospitality firm that owns the Pearl Beach hotel has warned potential buyers not to purchase the land occupied by luxury resort English Point Marina in Mombasa as a court dispute over a Sh5.2 billion debt owed to a bank proceeds.
In a ‘buyer-beware’ notice, Pearl Beach Hotels Limited has cautioned buyers against dealing with the property. Stating that no part of the land is for sale, the company described itself as the registered bona fide and beneficial owner of the property.
The company cited two pending court cases related to the property – one in the High Court and another in the Court of Appeal. The disputes involve Pearl Beach Hotels and KCB Bank.
“Any transactions on the said parcel of land without the express written consent of the registered proprietors may be null and void and may be treated as fraud punishable by law. Neither the said parcel of land nor any part or unit thereof is for sale,” the notice says.
English Point Marina is owned by Amin Kanji, his wife Leila, brother Alnoor, sister-in-law Nafisa, and Nazir Jinnah.
Tourists at the English Point Marina in Mombasa.
The property is located by the Mombasa harbour and consists of 96 apartments, eight penthouses and a 26-room hotel. It is one of the few private projects granted the Vision 2030 Private Sector Flagship status.
Court documents filed by KCB show that Pearl Beach Hotel borrowed a total of Sh5.2 billion between 2010 and 2016 to build the fully serviced five-star English Point Marina.
The loans were advanced in the form of a development finance facility, which would be sold to offset the debt.
The hotel was completed in 2017 and KCB says the developer was unable to service the loan.
Earlier this month, KCB seized the hotel for a second time after a court lifted a July ban blocking it from taking hold of the property over the debt.
The Court of Appeal froze the High Court orders issued by Justice Dora Chepkwony blocking the bank’s appointed receiver-manager, Kamal Anatroy Bhatt, from taking over the property without disclosing the reasons.
KCB first seized English Point Marina in June this year, sparking a court fight with the owners that saw the bank kicked out a month later.
The bank was allowed to return to the property until the appeal against the High Court ruling was heard and determined, setting the stage for a lengthy court fight and multiple suits. BY DAILY NATION
