KCB-Rwanda to auction homes builder’s estate
KCB’s Rwanda subsidiary is set to auction a housing estate owned by Kigali-based real estate developer DN International (DNI) after the latter defaulted on a loan it took in 2010 for the project. The loan is estimated at Rwf3 billion (Sh428.5 million) which the real estate developer took to build Green Park Villas in Kigali. The housing estate in Rusororo, 15 kilometres from Kigali International Airport in the outskirts of the Rwandan capital, comprises 50 units. The project was also on sale to prospective buyers in Kenya. Another of DNI’s projects known as Hillside Estate, which was financed by Fina Bank, has also run into headwinds after the developer apparently breached the contract.
The Rwanda Development Board (RDB), a state agency, has now advised the public against engaging the homes builder in any transactions as it (RDB) investigates the matter. “Following complaints by buyers and owners of the houses at Hillside Estate, the Government of Rwanda is facilitating a solution for all parties involved,” reads a notice by the state agency. “During this time, the Rwanda Development Board advises the public not to engage in any property transactions specifically belonging to DN International or Nathan Lloyd whether within or outside the Hillside Estate until this matter is resolved. Whoever does so will do it at their own risk,” said RDB.
The New Times, a Rwandan daily, quotes KCB-Rwanda managing director Maurice Toroitich confirming that the lender has announced the auction of Green Park Villas. The houses are priced at Rwf75 million (Sh10.7 million) per unit. “We have announced the auction of the Green Park Villas but we are not divulging financial details because there are other negotiations that we are conducting and any further announcement would jeopardise the process,” Toroitich told the daily.
The Hillside project’s cost is estimated at Rwf848 million (Sh121.1 million) and units are priced at Rwf55 million (Sh7.8 million) each. People who had bought 19 of the 28 houses have reportedly gone to court. KCB Group said in its first quarter results that its mortgage sales have risen by 49 per cent in the past year after it rolled out the product into Rwanda, Uganda and Tanzania.