Urithi Housing Co-operative Society Limited and Family Bank have reached a consensus to save a Sh1.5 billion property after loan default.
Urithi had secured a Sh1 billion loan from the bank and placed a prime land with 500 plots valued at Sh1.5 billion in Gatanga, Murang’a county, as security.
The real estate firm has already put up Panorama Gardens Project and has 500 investors.
The firm, however, failed to meet the loan repayment timelines and the bank withheld the piece of land and put it on sale, sending investors in the project into panic.
But the company's management, led by chairman Samuel Maina, held a series of meetings between the firm, Family Bank representatives and members to save the project and ensure the investments don't go down the drain.
“The bank has since suspended the redemption notice to allow for restructuring of the loan facility, which is at an advanced level,” Maina said.
He spoke after meeting with 200 investors on Tuesday.
Maina said the bank and the company have reached a partial discharge agreement and members will soon get their properties upon making the requisite payments.
He said the Sacco has adopted a member operated model to deal with the investors, the Sacco management and Family Bank.
“Panorama was one of the projects giving us problems, but we have reached an agreement between the members, the bank and my office. Panorama plots will now go back to the members, a major breakthrough in the revival journey of Urithi …those who have finalised their payments will get their plots back,” Maina told the investors.
He said members will in six months time get title deeds for their plots.
"I appeal to them to make the necessary payments as title deeds processing is underway,” Maina said.
He said the company’s affordable housing sector has recommenced and the management is working round the clock to deliver the project to the investors.
“We are back. We will ensure that all those who have invested in Urithi reap their benefits. Discussions are ongoing with projects such as Osteen Terrace Gardens (OTG), Birmingham and Ruby Gardens among others,” Maina said.
“We also call for patience on members in other projects like OTG and Birmingham and I can assure them that we are working tirelessly to complete the projects. We take pride in ensuring the delivery of our promise to our members and safeguarding their investments with us.”
Since inception in 2012, Urithi has undertaken nearly 200 projects, of which 120 have been completed.
Another 38 projects have been finalised in the last one-and-a-half years, while the balance consists of ongoing projects.
Edited by A.N
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