Equity Bank has auctioned property belonging to a Ugandan developer following a court dispute involving a $10.8 million loan advanced to the developer in 2017.
The developer, Simbamanyo Estates Limited, has lost two prime properties comprising a four-star hotel (Afrique Suites) and Simbamanyo building, which houses the Gender ministry in Kampala over failure to pay the loan.
Simbamanyo Estates had pledged the hotel to Equity Bank Limited as collateral in securing the $10.8 million loan.
Equity Bank sold the two properties by public auction on October 8 this year after the Ugandan high court dismissed pleadings by proprietors of Simbamanyo Estates Limited seeking to stop the sale.
Simbamanyo Estates had petitioned the Court of Appeal seeking orders to maintain the status quo stopping the sale of their property by Equity Bank which is seeking to recover loans worth $10.8 million.
The property firm had earlier sued Equity Bank Uganda and its Kenyan parent challenging the legality of the outstanding loan, following a June 4 notice of default given by the bank demanding payment of arrears worth $398,362.33.
Another real estate firm, Luwaluwa Investments, has taken over the hotel property after purchasing it from the bank at $4,350,000.
Meera Investments Limited owned by tycoon Sudhir Ruparelia bought Simbamanyo building which is housing the Gender Ministry among other entities on Lumumba Avenue.
Equity Bank lawyers Sim Katende and Frederick Mpanga sought a court order compelling Simbamanyo Estates to reimburse legal costs incurred by the bank.