Auctioneers go for former Nakumatt boss’ prime property
By Rawlings Otieno, August 3, 2021
Former Nakumatt Holdings Chief Executive Officer Harsha Atulkumar Maganal Shah’s property worth millions of shilling is set for an auction.
In a paid up advert in one of the dailies, Phillips International Auctioneers is set to auction Shah’s prime residential property (Villa House No. 3).
“Prime residential property for sale by public auction situated within Elite Garden Estate, Muthangari Area-Nairobi County,” reads part of the advert.
The auctioneer’s hammer came after Shah lost a court bid to reverse the auction of his property for Sh1.04 billion over a loan he guaranteed the retail chain.
The property known as LR No. 5/134 (IR No. 49802) is easily identified as House number 3 located at Elite Gardens Estate.
The title is held on a leasehold interest for a term of 45 years with effect from September 1, 1989.
“The property is registered in the name of Harsha Atulkumar Maganal Shah G/T Nakumatt Holdings Ltd (in liquidation),” reads part of the advert.
The property is a four bedroom villa with a domestic servant quarters and a semi-permanent generator room.
Phillips International Auctioneers demands that all interested purchasers are required to view the property and verify the details and that the interested bidders should pay a refundable fee of Sh1 million to obtain a bidding number and catalogue at the auctioneer’s office before the auction date.
“The declared purchasers must deposit 25 per cent of the purchase price by bankers’ cheque by close of business of the auction date. The balance will thereafter be payable within 90 days to the charges, failure to which auction deposit will be forfeited.
Financial muscle
By the time the supermarket chain collapsed in January, 2020 it had racked up debts amounting to over Sh30 billion – including Sh18 billion to suppliers, Sh4 billion to commercial paper holders and the rest to banks.
Owing to their financial muscle, banks have been more aggressive in their pursuit of repayment.
He offered his house in Lavington as security in 2011, accounting for Sh25 million of loans issued to Nakumatt. It was sold by KCB through Leakey Auctioneers earlier in 2021.
KCB had previously sold Shah’s prime property in Nairobi’s Industrial Area to Furniture Palace International Limited for Sh1.04 billion – as revealed by court records.