Shelter Afrique did not frustrate Ujenge Palm Estate project in Kagugu

Editor, In the article “Homeowners worried as housing deal teeters” (The New Times, January 21), it was insinuated that Shelter Afrique may at least be responsible for the stalled construction of the first phase of the Palm Estate Project consisting of 32 modern apartments. Shelter Afrique is fully committed to Rwanda and continues to explore every opportunity for supporting local entrepreneurs and institutions to provide new homes for local people. Since 2011, Shelter Afrique has approved loans in excess of US$37.3 million [Rwf25.4 billion] for new housing and mortgages in Rwanda. This includes a landmark partnership with the City of Kigali and the Bank of Development of Rwanda (BRD) to develop 2,500 homes over the next five years. It is within this context that Shelter Afrique advanced a loan to of US$6.5 million to Ujenge Ltd to part finance a development of 168 units. Unfortunately, Ujenge has consistently failed to live up to its obligations under a loan agreement, particularly meeting commitments to make interest payments as and when due. Therefore, in accordance with terms of the agreement, both Shelter Afrique and Ecobank, as co-lenders, are pursuing recovery actions. This is the binding corrective action stipulated in the agreement. However, there are a couple of erroneous impressions created by the report which we believe is important to correct to ensure that members of the public are not discouraged from a legitimate aspiration and usually fulfilling experience of purchasing a home from local developers. The report unfortunately and perhaps inadvertently gave the impression that either Shelter Afrique or Ecobank or both have or had frustrated the borrower’s efforts to mobilise equity from two interested investors. This is not true. We wish to state that whilst we have not received a credible or firm offer from TLG, Shelter Afrique introduced Phatisa to Ujenge and facilitated a meeting in December 2014 in the hope that both parties would be able to reach an agreement. Shelter Afrique has not received an offer from either Phatisa or Ujenge about the progress of those discussions. However, for the avoidance of doubt, Shelter Afrique continues to welcome any investor with a credible proposition to step in. Secondly, Shelter Afrique understands the concern and anxiety amongst buyers who contracted with Ujenge to acquire homes in Phase 1 of the project. However, Shelter Afrique has not been a party to these agreements. Whilst we retain our commitment to the development of affordable housing in Rwanda, we remain open to welcome all proposals which will help recovery of advances to the borrower. Shelter Afrique, Nairobi

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Shelter Afrique did not frustrate Ujenge Palm Estate project in Kagugu