Equity Bank Auctions Simbamanyo Building To Sudhir After Owners Fail To Pay UGX30B Loan

Equity Bank Auctions Simbamanyo Building To Sudhir After Owners Fail To Pay UGX30B Loan

By Spy Uganda

Kampala: As we report this, City tycoon Dr.Sudhir Ruparelia is one more building richer. This, after he acquired Simbamanyo building after Equity Bank sold it to him through his Meera Investments Company Limited at a whooping $5million approx.(shs18.5 billion) through a public auction in an effort to recover Bank’s unpaid loan amounting to about $8.1million (approx. Shs30billion) which was acquired by now-former owner Peter Kamya in 2012 to reportedly build a multibillion, Afrique Hotel located in Mutungo, a Kampala surburb.

Equity Bank Letter Confirming Sell Of Simbamanyo House To Meera Investments 

READ ALSO: Tycoon Sudhir, Meera Investments Top On URA List Of Highest Rental Tax Payers

“We are writing to inform you that Equity Bank Uganda Limited, as mortgagee, has completed the sale of land comprised in LRV 2220 folio 3 plot 2, Lumumba Avenue Simbamanyo House, after a public auction concluded on 8, October 2020 to the best-evaluated bidder M/s Meera Investments Ltd, ” said Sam Kirubi, Equity Bank Uganda Managing Director in a statement dated October 8,2020.

Statement Of Search Into Simbamanyo Now Under Meera Investments Control

This means that tycoon Sudhir Ruparelia is the new landlord for all the tenants of Simbamanyo Building which also accommodates the Ministry of Gender, Labour and Social Development (MoGLSD) in Kampala.

It is worth noting that Equity Bank has for long been having a dispute with Simbamanyo Estates, now former owners of Simbamanyo building located on Plot 2 Lumumba Avenue emanating from a loan which Equity Bank extended to Simbamanyo estates, amounting to a consolidated sum of $8.10m (Shs29.83b), including interest and operational fees, among others. It’s reported that the side loan was sought to finance the construction of Afrique Suites Hotel in Mutungo, Luzira, a Kampala suburb and facilitate the takeover of a prior facility advanced to Simbamanyo by Shelter Afrique.

Some Of The Entity’s Documents 

According to the bank details, the two entities of Equity Bank Uganda and Equity Bank Kenya contributed money together of $3.5m and $2.5m respectively of which Simbamanyo Estates is challenging saying that it is only considering $7.19m (Shs26.48b), hence accusing Equity Bank Uganda of coordinating with Equity Bank Kenya to illegally carry business in Uganda where it has no jurisdiction.

In addition to this, Simbamanyo Estates is challenging court documents in which they question on how Equity Bank Uganda and Equity Bank Kenya, which provided bridge financing of ($10m) were drafted into a loan agreement yet Simbamanyo had never applied for a loan facility from the two banks. However, Equity Bank on the other hand rubbishes Sambamanyo’s claims. “They are just walking on water and trying to buy sympathy from the public yet everything was done in broad daylight and both parties were aware of the loans,” Equity Bank responded to Simbamanyo.

Now in a letter seen by TheSpy Uganda addressed to occupants, users, and tenants of Simbamanyo house indicates without a doubt that Sudhir is fully the owner of the entity and each rent coming in will go directly to his accounts.

CL Risk Management Letter To Tenants, Occupants & Users Of Simbamanyo House 

Read Letter Below;


Dear All, We act for and behalf of Equity Bank Uganda (hereinafter referred to as “the Bank”) to notify you that Equity Bank has SOLD the above-mentioned property today, 08 days of October 2020, having been mortgaged to the Bank by Simbamanyo Estates Limited, your former Landlord and following a default in the performance of their loan obligations.

The property has been sold to Meera Investments Limited thus making them your new Landlord Nobody else, whether Simbamanyo Estates Limited, Peter Kamya, or any other person claiming through them, has any power or authority over the said property.

Anybody else, who purports to deal with the said property in any manner inconsistent with that of Meera Investments Limited, commits an offence and is liable to legal sanctions, You are now requested to regularize your tenancy, occupancy and use of the property with the new Landlord (Meera Investments Limited), In particular, you should not pay any rent or other money to anybody other than Meera Investments Limited.

TAKE NOTICE THEREFORE that unless you comply with the terms of the new/current Landlord, you will be physically evicted therefrom at your own embarrassment and costs. No further or other notice or warning will be given.

Your cooperation in this matter will be highly appreciated,”.

On Wednesday, Civil Division of the High Court Justice Adonyo, in the famous DTB, Ham Kigundu fraud case ruled that DTB Kenya was illegally transacting business in Uganda hiding behind DTB Uganda and therefore errored transacting business with Ham kigundu in Uganda using DTB Uganda. Could Equity, Simbamanyo case take same tides? Watch the space…. 

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