Suraya’s real estate empire seems to be experiencing some shaking as it stands to loose part of the vast real estate development, Tiara Villas, that is valued a billions of shillings.
The A bank has put the Villa up for auction Sh384 million luxury residential houses in the upmarket Lavington suburb after the developers, Peter and Susan Muraya (Suraya), failed to settle a loan.
The auction notice published Monday by Garam Auctioneers invited potential buyers of the estate to attend a fire sale Tuesday, signalling distress for off-plan buyers who were to pay Sh48 million for each town house.
The estate sits on a 0.809-acre parcel of land in the wider Lavington Estate in Nairobi and features more than eight town houses.
“Under instructions from the chargee’s advocates, we shall sell by public auction the properties together with buildings and improvements erected therein,” said the auctioneer’s notice.
“Each town house has five bedrooms, all en suite. The title is freehold interest.”
The real estate developers had set the price of each off plan development at Sh48 million, putting the minimum possible value of the development at Sh384 million.
House prices ordinarily go up on completion of construction, which means the town houses are now probably worth much more than they were before completion.
“These properties have been designed by reputable architects. They will be complemented by exemplary detailing and tasteful specifications,” says Tiara on its website.
“Arranged on three levels, with five bedrooms all ensuite, the property also has staff quarters, parking for three cars, individual garden, a pool, club house and entertainment area.”
A dip in house prices and the slow uptake of newly-built units have heightened fears of renewed pressure on developers who borrowed to fund for-sale projects as obligations mature.
In March last year, the Murayas were dragged into a legal battle after a contractor filed a high-profile petition in court seeking to wind up two real estate companies associated with the couple over non-payment of debt.
Eternal Foundation Construction then wanted the Murayas’ two companies, one of which holds a vast real estate property valued at more than Sh1 billion, liquidated.
Sucasa and Encasa West Limited, the two companies that were at the centre of the liquidation suit, are owned by the Murayas.