Kampala,Uganda: Businessman Muhammad Hamid, 47, the owner of Pearl Of Africa Hotel located on Kampala’s verdant Nakasero Hill is soon losing it after court bailiffs began the process of putting the multi-billion hotel on auction to recover the unpaid debt worth shillings 611 billion.
Situated at a height of 1240 meters above mean sea level, the resort is a five-star hotel offering one of the best views of Kampala City from every angle.
The 32,000 square meter hotel has 23 stories, 296 rooms, 37 suites, 2 restaurants, 3 bars, 9 meeting rooms, executive lounges on the 15th floor, and a business centre with all the services of a five-star hotel.
ENSafrica Advocates and M/S MMAKS Advocates, representing the Industrial Development Corporation of South Africa Ltd., ordered Armstrong Limited to publish a public notice in Ugandan newspapers on Monday, September 25, 2023.
The notice stated that the hotel would be put up for public auction on October 26, 2023, unless the hotel “pays to us the entire outstanding decretal sum (including interest) and our fees and costs before the fall of the hammer at the auction.”
Aya Investments owes the South African lender Shs 611 billion, which the auctioneers hope to recoup. The funds are a component of the financing agreement that AYA and the South African organization signed in order to finance the hotel’s construction in 2007.
In court, AYA claimed that the lender had put them in a difficult situation by delaying the money’s availability, which in turn delayed the project’s completion.
Hamid also mentioned disagreements with the Uganda Revenue Authority on the taxes to be paid, but he also acknowledged that it would be difficult to finish the work on schedule, particularly given Uganda’s landlocked status.