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KCB Takes Over English Point Marina Over Sh5bn Debt
The owners have failed to meet loan restructuring measures.
KCB has taken over English Point Marina and placed its owner – Pearl Beach Hotels – on receivership over a defaulted Sh5.2 billion debt.
According to the Business Daily, KCB took over the property on Tuesday after Pearl Beach Hotels defaulted and failed to meet loan restructuring measures placed by the lender.
“I can confirm that KCB bank has taken over English Point today,” the newspaper quoted an unnamed source, adding that the bank had appointed a receiver manager to run the asset.
The receiver-manager will oversee the selling of the property to raise money to pay the debt.
Located on a four-acre beachfront site in Mombasa, with full access to the English Point Creek, English Point Marina is East Africa’s first-ever 5-star marina.
Co-owned by Amin Kanji, his wife Leila, brother Alnoor, sister-in-law Nafisa, and Nazir Jinnah, the marina is one of the few private projects granted the Vision 2030 flagship status.
The luxury development offers a range of facilities including 96 apartments, eight penthouses, and 26-room Hotel English Point operated by the developers.
Sh182 million
The off-plan prices of the marina apartment ranged from Sh33 million to Sh50 million, while penthouses cost Sh150 million each.
RELATED: KCB Eyes Big Money in Low-Cost Housing Market
The price later appreciated after the construction of the marina kicked off – with the same units selling for between Sh42.5 million and Sh82 million.
The penthouses were sold for Sh182 million each.
KCB is conducting an audit of the buyers and their status of servicing their debt. Those who have cleared their loans will not be affected by the takeover.
“Those who have paid up will get their houses while those who are yet to complete payments will process the remainder under the bank,” the source said.
English Point Marina, whose construction started in October 2009 was completed in 2015 and the first owners arrived in early 2016.
In March 2022, 12 buyers jointly sued the developer for locking them out of their apartments on account of disputed service charge bills.
The buyers said that despite paying the disputed service charge, power had been disconnected from their units as the managers failed to account for the money.
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