September 25, 2023
KAMPALA – In a significant development in Kampala’s hospitality sector, the prestigious Pearl of Africa Hotel, one of the city’s largest and most iconic hotels, has been listed for sale. This announcement comes following a warrant of attachment issued by the commercial division of the High Court in Kampala.
MMAKS Advocates and ENSafrica Advocates, prominent city law firms, jointly placed the property on the market. The property, comprised of land under Land Registry Volume 3556 Folio 8, Plots 7A1-9A1, and 10 along Lugard Road, as well as Plots M23, M183, and 2E on Nakaseero Hill Road, spans an impressive 5.975 hectares. It includes the magnificent 5-star Pearl of Africa Hotel, located at a commanding altitude of 1240 meters above sea level, offering a breathtaking 360-degree view of Kampala City.
The warrant of attachment stems from a legal battle between the Industrial Development Corporation of South Africa Ltd and Aya Investments (U) Limited, the proprietors of this distinguished establishment.
Earlier this month, the Court of Appeal issued a decision in favor of the Industrial Development Corporation of South Africa Ltd, ruling that AYA Investment Uganda must pay an outstanding debt of Ugx 611 billion. The Court of Appeal insisted that Aya Investments Uganda Limited had no right of appeal. This decision came after the Commercial Court had previously upheld the payment of this substantial award to the South African company.
The origins of this dispute date back to 2021 when the Industrial Development Corporation of South Africa Ltd attempted to take possession of the hotel to recover a debt totaling $118 million. Aya Investments (U) Limited responded by seeking legal intervention at the Court of Appeal to halt the seizure. AYA claims that the corporation’s actions hindered the timely availability of funds, consequently delaying the hotel’s construction, which had been financed through a contract signed between AYA and the South African entity in 2007.
This latest development adds to the ongoing challenges faced by Aya Investments (U) Limited, as it navigates multiple court battles and experiences difficulties meeting its financial obligations.
The listing of the Pearl of Africa Hotel represents a significant moment in Kampala’s hospitality landscape, as the sale process is expected to garner substantial interest from both domestic and international investors interested in acquiring this prime piece of real estate.
