Dusit Complex Faces Auction as Cape Holdings Ltd Fails to Block Sale » Capital News

NAIROBI, Kenya July 25 – Cape Holdings Ltd, the owner of the 14 Riverside property where the prestigious Dusit Hotel is located, is set to face auction after failing in its latest attempt to prevent the sale of the premises.

The company has been unable to stop Synergy Industrial Credit from proceeding with the sale to recover a debt of Sh5.5 billion, stemming from a failed deal.

The dispute began in 2010 when Cape Holdings Ltd developed the complex and agreed to sell some blocks and parking lots to Synergy Industrial Credit Ltd for Sh750 million. However, Cape Holdings did not transfer the property as agreed, leading to a legal dispute that was eventually referred to arbitration.

In 2015, the arbitrator ruled in favor of Synergy Industrial Credit, ordering Cape Holdings to refund the principal amount along with interest and other costs, totaling Sh1.66 billion. Since then, the case has been entangled in legal proceedings as Cape Holdings sought to overturn the decision.

The matter reached the Supreme Court and was subsequently referred back to the Court of Appeal. In a recent ruling, the Court of Appeal highlighted the suspicious timing of Cape Holdings being placed under administration by I&M Bank, which occurred immediately after the Supreme Court dismissed yet another appeal, effectively ending the company’s legal maneuvering.

As a result, the property at 14 Riverside is now slated for auction as Synergy Industrial Credit seeks to recover the outstanding debt.

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