KCB Group has seized Mombasa’s luxury property English Point Marina and placed Pearl Beach Hotels, the real estate firm that owns it, under statutory management over a Sh5.2 billion debt.. (Read More Here)
Pearl Beach Hotels has been struggling to meet its obligations to the bank over the years.
A source with direct knowledge of the matter at the Business Registration Services (BRS) confirmed that the lender had taken over the property on Tuesday.
“I can confirm that KCB bank has taken over English Point today,” the source said, adding that the lender has appointed a receiver-manager to run the asset.
English Point Marina joins the high-value properties that have fallen in the hands of lenders after their developers defaulted.
They include Nairobi’s DusitD2, which is currently claimed by I&M Bank, with other creditors seeking to take ownership of the property complex.
The receiver-manager is expected to sell part or all of the property with an aim of raising enough funds to settle the amounts owed to KCB. Other creditors may also get something once the bank’s claims are paid.
Lenders are still allowed to appoint receiver managers in loan contracts that existed before the commencement of the Insolvency Act of 2015, which subsequently ushered in administration that prioritises first salvaging a troubled firm before sale of assets is considered.
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