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More TSS land, buildings set for sale over debts

More of the late Mombasa tycoon Twahir Sheikh Said’s (TSS) property at the Kenyan coast and Machakos is set to be auctioned in the next three weeks in a bid to offset defaulted loans disbursed by local banks to his business empire.

The idle and developed land in Mombasa, Lamu and Machakos totals 41.8 acres registered under the various subsidiaries of the TSS empire and whose sale is expected to raise millions of shillings to service the debts.

According to a notice by Garam Investment Auctioneers, a villa complex in Nyali, a commercial building in Mombasa town, a 28-acre seafront plot in Shella as well as industrial properties with go-downs in Shimanzi and Mavoko will be sold.

Various entities in his vast business empire had borrowed more than Sh3.5 billion from local banks but were unable to pay by early last year, resulting in the dismantling of the TSS empire.

The auctioneers want prospective bidders for the new property up for sale to deposit Sh10 million for each before participating in the sale, indicating their high value.

PRIME INDUSTRIAL PROPERTY

Among them is prime industrial property of about 28 acres on Lamu island and a 1.2 acre prime seafront plot in New Nyali, Mombasa County.

Two lucrative properties registered in the name of Juja Coffee Exporters will be auctioned on April 24; a residential plot Nyali Villas, Mombasa, overlooking the ocean with an estimated monthly rental income of Sh2 million
Another property registered under the subsidiary, a double storey commercial plot in Mombasa’s central business district generating a monthly income of half a million will also be sold.

Two commercial plots with go-downs in Mavoko will be auctioned on April 18 while four plots in Shimanzi Industrial Area, Mombasa, will be up for grabs on April 24.

The assets on sale represent properties that the TSS entities had pledged directly to the banks or through KAAB Investments, a company owned by the late businessman’s brother-in-law Aweys Mohamed Ahmed.

KCB Group, NIC Bank and Bank of Africa are among the lenders that had disbursed loans to various subsidiaries of the TSS empire, which failed to service the debts.

KCB last year took over the management of TSS Unga Millers after it failed to repay a Sh1 billion loan.

Bank of Africa also moved to seize some of TSS’s assets after Juja Coffee Exporters, another of the family’s businesses, defaulted on a Sh1 billion loan.

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