KCB to auction DN Internationalís housing estate
Kenya Commercial Bank-KCB-Rwanda has issued a notice of intention to auction properties of debt ridden real-estate developer, DN International (DNI), over an estimated Rwf 3 billion loan acquired from the lender in 2010.
“We have announced the auction of the GreenPark Villas but we are not divulging financial details because there are other negotiations that we are conducting and any further announcement would jeopardise the process,” the Managing Director KCB-Rwanda, Maurice K. Toroitich, said.
Early 2010, DNI acquired the loan from KCB to construct Green Park Villas consisting of 50 housing units in Rusororo, about 15 kilometres from Kigali International Airport.
Each house is valued at Rwf75million.
Following a default in loan repayment, the Bank reviewed the circumstances under which the developer acquired the loan and a decision was taken to auction its property.
Despite KCB’s intention to auction the houses next week, the GreenPark Villas seem to be riddled with controversy with suppliers demanding payment for materials DN International used to construct another city estate, and now want the authorities to intervene.
A group of 96 suppliers, companies, individuals and casual labourers claim DNI owes them over Rwf372 million, alleging their fate now hangs in the balance.
Meanwhile, a case involving 19 people who bought houses at a cost of Rwf 55million per unit in another contentious project belonging to the beleaguered firm, Hill View Estate, which is located in the outskirts of Kigali city, have now taken their case to court.
DNI is said to have reportedly breached a contract with the project’s financer – Fina Bank.
According to one of the victims, Grace Mutsinzi, they agreed to hire one lawyer to represent them all in court.
“During the first appearance, DNI did not turn up in court. The judge adjourned the case to September so that a public call can be made for DNI to come to court, if they don’t come, the case will proceed,” Mutsinzi disclosed.
“We are asking the court to stop the auctioning of our houses for which we paid the full amount. We also want to get our title deeds because we paid for these houses,” he asserted.
Last year, Fina Bank had advertised the impending auction of the 19 houses at Hill View Estate after the developer failed to repay the debt. The controversial estate, which has total 28 units, is reportedly worth Rwf 848 million.
However, Fina Bank rescinded the decision and maintained the principle of client protection and has since declined to divulge any information related to its auction plans.
Earlier, victims who spoke to The New Times had voiced their grievances over what they termed as DNI’s ill-intentions.