Multibillion Tirupati Properties Put On Notice Of Sale Over KCB UGX21B Debt

Multibillion Tirupati Properties Put On Notice Of Sale Over KCB UGX21B Debt

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By Spy Uganda 

According to the notice of sale trending in a couple of media reports, KCB-Kenya and KCB-Uganda are moving to sell a number of Tirupati development properties failure to clear a debt of $5.97m-UGX21.1billion within the next 30 days.
Tirupati is a privately owned real estate development and construction company in Uganda that was established in 2006.
 

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Among the properties that are at risk of sale, include; condominium units on Ovino in downtown Kampala and Tirupati Mazima Mall in Kabalagala a Kampala city suburb, vacant land in Kikaaya and several units contained in a business park.

According to Court documents, it all started in  2012 when KCB Uganda and KCB Kenya entered into a loan agreement in which the two banks advanced Tirupati a loan facility of $7m (Shs24.8bn), secured by a number of properties in Kampala.

However, by 2017, Tirupati had started defaulting, failing to deposit payments to KCB Uganda from April to June 2017, as well omitting remission of loan payments to Kenya Commercial Bank for six months in 2017 as well as disposing of some of the suit properties.

On June 23, 2017, the banks were prompted to put the properties on sale something that triggered Tirupati to rush to court, seeking to put banks on halt citing that the actions were in breach of contract, statutory obligation and duty.

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In fact, Tirupati then told Court that had not defaulted any payments to warrant the sale of mortgaged proprieties before again entering a consent judgement with the same banks in 2017 conceding to being indebted $5.97m (about Shs21.1b).

From the consent agreement, the two parties further agreed to draw a new payment plan, in which Tirupati would deposit varied sums of money on different dates upon which KCB would release titles of $400 per square metre worth of received sums which would see the sale of the properties by the banks stopped.

However, the above agreement has not been fulfilled since then according to the banks thus the second notice of sale of the multi-billion properties.

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