Prime
Lotis Towers auctioned, renamed Arie Towers
Former Lotis Towers, which has since been renamed Arie Towers. The prime building located on MacKinnon Road in the leafy Nakasero area of Kampala City, was sold through auction. PHOTO/FRANK BAGUMA
What you need to know:
- While taking over the property, the new management, in a bid to assert itself, recently issued a memo to the tenants in the building announcing themselves as the new landlords.
Following a loan dispute between dfcu Bank and businessman Samuel Lotigo, which saw him lose one of his prime properties, Lotis Towers, the said property has since been renamed Arie Towers.
The change in the name of the 14-storey building is because it is now under management of another property mogul Sudhir Ruparelia and his wife Jyotsna Ruparelia, having recently bought the prime building located on MacKinnon Road in the leafy Nakasero area of Kampala City through auction.
The new name of the building is visibly placed on it.
Background
It is reported that Mr Lotigo secured a loan from dfcu Bank but along the way, he failed to service it.
This prompted the bank to auction the property through Jubilee Auctioneers in a bid to recover its outstanding debt.
By press time yesterday, it remained unclear how much money Mr Lotigo owed the bank since dfcu management declined to divulge details, citing bank-client confidentiality.
“We cannot share details of a customer’s loan without their consent,” Ms Helena Mayanja, the head of Corporate Affairs and Public Relations at the bank, said, adding: “This was a commercial transaction bound by the confidentiality clauses between the bank and the client, and therefore, we will not be able to disclose the details of the facility and the eventual auction unless with explicit consent from our client.”
While taking over the property, the new management, in a bid to assert itself, recently issued a memo to the tenants in the building announcing themselves as the new landlords.
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Equally, dfcu Bank issued a statement dated May 3 in which it confirmed the auctioning of Lotis Towers and the change in its ownership.
“Please note that the above property was pursuant to a mortgage by M/S Lotigo Properties Limited in favour of dfcu Bank Limited, sold to Sudhir Ruparelia and Jyotsna Ruparelia (purchasers). We hereby accordingly inform you that the said property now belongs to new purchasers and all rental payments should be made in their favour,” the statement reads in part
It adds: “We request all tenants to cooperate with the purchasers as they are now your new landlords to ensure a seamless transition.”
The commercial property came into the limelight two years ago after it was condemned by the National Building Review Board (NBRB) and the Works ministry following a compression failure of a concrete column on the 6th floor.
In the wake of the cracks, the ministry, in its emergency assessment report on the building, ordered immediate evacuation of the tenants.
It’s alleged that following the emergence of the cracks, a number of high-profile tenants, including the Judicial Service Commission (JSC), left the building.
This saw the rental fees that were going to Mr Lotigo, dwindle, hence he was unable to service his outstanding loan with dfcu Bank.
Other instances
This is not the first time a commercial building is auctioned after running into bad loans or debts and having its original name changed in the process.
In 2020, Simbamanyo House on Lumumba Avenue just above Central Police Station in Kampala, was renamed Gender & Labour House after it was auctioned following a loan dispute between the owner and Equity Bank.
The building among others, accommodates the Gender ministry.
Meera Investment Ltd owned by Mr Ruparelia acquired the building through an auction that had been instituted by Equity Bank in an effort to recoup unpaid loans of up to Shs30b.
