Businessman Hamid’s Pearl of Africa hotel to be auctioned

by MMC
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The Pearl of Africa Hotel in Kampala City is under the hammer.

The hotel owned by businessman Muhammed Hamid was put up for public auction on Monday.

The Hamid-owned Aya Group of Companies launched the iconic hotel in Kampala about six years ago, but the company has since been grappling with a litany of court cases over loans owed by the businessman.

The hotel reportedly cost more than $300 million to build.

The iconic hotel located on Nakasero features 296 rooms, 42 suites, two tennis courts, two squash courts, two basketball courts, two bars, 6 swimming pools, a 740 square meter ballroom, 9 meeting rooms , 2 conference rooms, a business center. , a wellness center and Spa, and breathtaking panoramic views.

The hotel covers 32,000 square meters and includes 23 floors, 26 rooms, 37 suites, two restaurants, three bars and nine meeting rooms.

However, in an opinion published in the New Vision In Monday’s newspaper, the auctioneer, Armstrong Limited, noted that the hotel would be sold unless the judgment debtor (Hamid) paid the entire outstanding decretal sum (withheld amount), including interest and other fees and costs, before the hammer falls at auction. auction.

“On the direction of the High Court of Uganda (Commercial Division) in the case of Execution Misc. Application No. 275 of 2023 (arising out of) Arbitration Cause No. 12 of 2021 and High Court Miscellaneous. Cause No. 58 of 2021, Industrial Development Corporation of South Africa Ltd (judgment creditor) v AYA Investments (U) Limited (judgment debtor), and MS MMAKs Advocates and ENSafrica Advocates, attorneys for the judgment creditor, we will proceed with the sale of the property …together, all developments will then be put up for public auction pursuant to a Warrant of Seizure and Sale issued by the High Court of Uganda (Commercial Division),” the notice said.

In 2021, the Industrial Development Corporation of South Africa Ltd attempted to seize the hotel to recover a $118 million debt, but the court barred it.

The money is part of the financing contract signed between AYA and the South African entity to finance the construction of the hotel in 2007, according to reports.

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