Aya Investment’s Pearl of Africa Hotel is set to be auctioned withib 30 days if the owners fail to clear a loan that has accumulated to Shs614bn.
A sale by public auction notice was placed in the New Vision newspaper this Monday September 25, by court bailiffs, Amstrong Limited.
This follows Aya’s failure to finance multiple credit agreements acquired from Industrial Development Corporation (IDC) of South Africa Limited between 2007 and 2017 to finance the hotel.
The initial sum lent was $81,765,318 (about Shs305b). However, by September 13, 2017, this amount had accrued to $118,817,012 (about Shs444b) due to accumulated interest.
An arbitral tribunal in South Africa, led ordered Aya to pay IDC the outstanding amount that has accumulated to Shs614b as part of the arbitral award.
IDC then sought to have the award registered as a decree of the High Court in Uganda, which would allow them to enforce it. Aya attempted to block the execution of the arbitral award by filing an application in the Court of Appeal, but this application was dismissed earlier this month, paving way for the impending auction.
The auction notice reads: “Upon instructions from the High Court of Uganda (Commercial Division) in Execution Misc. Application No. 275 of 2023 (arising from Arbitration Cause No. 12 of 2021 and High Court Misc. Cause No. SE1 of 2021), Industrial Development Corporation of South Africa Ltd (Judgment Creditor) vs AYA Investments (U) Limited (Judgment Debtor), and M/S MMAKS Advocates and ENS africa Advocates. Counsel for the Judgment Creditor, we shall proceed to sell the Property below together with all developments thereon by public auction pursuant to a Warrant of Attachment and Sale issued by the High Court of Uganda (Commercial Division) unless the Judgment Debtor pays to us the entire outstanding decretal sum (including interest) and our fees and costs before the fall of the hammer at the auction.”
The hotel spans 32,000 square meters and comprises 23 floors, 296 rooms, 37 suites, 2 restaurants, 3 bars, 9 meeting rooms, 15th floor executive lounges and a business centre.
Aya now has until 26th October to pay the entire sum or lose the property.