Bank Sale: Ruparelia Group acquires Simbamanyo building

The sale of Simbamanyo building seems to be the climax of a legal dispute that its owner Peter Kamya who is also the proprietor of Simbamanyo Estates is embroiled in with Equity Bank Uganda and Equity Bank Kenya over unpaid loans to his company.

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Simbamanyo House, the building accommodating the Ministry of Gender, Labour and Social Development along Lumumba Avenue in the city center that was recently acquired by Ruparelia Group of Companies under meera Investments Ltd. File/Photo

By Nasser Kasozi Akandwanaho

Uganda’s tycoon Dr.Sudhir Ruparelia through his investment company Ruparelia Group of companies has acquired Simbamanyo House, the building accommodating the Ministry of Gender, Labour, and Social Development in the strategic Kampala city centre.

According to CL Risk Management Services who auctioned the house on behalf of the bank, tenants will be required to start dealing with Meera Investments Limited as the new landlord.

“You are now requested to regularise your tenancy, occupancy and use of the property with your new Landlord—Meera Investments Limited,” a statement by Christopher Lumala, the CL Risk Management Services Managing Director reads in part.

On October 8, 2020 the Homeland Newspaper landed on a notice drafted by CL Risk Management Services to all tenants that Sudhir’s Meera Investments Limited had acquired the building through an auction by the bank that sought to recover a $8.1million loan.

“We are writing to inform you that Equity Bank Uganda Limited, as mortgagee, has completed the sale of the above-mentioned property, after a public auction concluded on October 8, 2020, to the evaluated bidder M/S Meera Investment Ltd.

All the tenants were put on notice of the said auction via an advert in the Daily Monitor Newspaper dated September 8, 2020,” the notice signed by the Equity Bank Managing Director, Sam Kirubi reads in part.

“The new owners will get in touch with all tenants individually to work out the modalities for the ownership transition. We trust you to accord the new owners all the courtesy and all future rental payments and other tenant inquiries and obligations will be handled by Meera Investments Ltd or their agents.”

The sale of Simbamanyo building seems to be the climax of a legal dispute that its owner Peter Kamya who is also the proprietor of Simbamanyo Estates is embroiled in with Equity Bank Uganda and Equity Bank Kenya over unpaid loans to his company.

The amount to be paid was $8.10 million(shs29.83bn) including interest and operational fees but Simbamanyo failed to service the loan prompting Equity Bank to take over Simbamanyo House along Lumumba Avenue.

According to court documents, the two banks entered into an agreement to have Simbamanyo get $6million to finance the construction of Afrique Suites Hotel in Mutungo as well as facilitate another loan that had previously been advanced to the estates company.

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