The first lot of home buyers who had invested in the Sh30 billion Fourways Junction Estate along Kiambu Road are expected to receive about 200 houses mid next month, bringing back on course the project that has been dogged by controversy.
The houses , which consist of villas and apartments, cost between Sh5.8 million and Sh13.5 million each.
Those who were paying cash were required to pay 80 per cent of the fee whereas those who were on mortgage schemes were expected to pay 10 per cent of the fee upfront with the rest being financed through a construction financing agreement with Equity Bank.
Mrs Sue Muraya, one of the directors of Muga Developers, said the delay in completing and handing over the first phase was caused by court cases that had been filed by Mrs Nancy Gatabaki, a former partner and director.
“We would have handed over the houses to the owners by now, but the courtroom battles forced us to halt the work. Everything has now been solved,” Mrs Muraya and her husband, Peter, own Suraya Property Group—the company that originally partnered with the Gatabakis in the real estate project.
The units are part of phase one of the multi-billion shilling project with construction of the second phase – that will have 300 units sitting on a 54 acre piece of land – having already started.
The handover will come as a relief to buyers who had paid Sh2 billion in advance for the homes. “We are on the finishing touches now to ensure we hand over the apartments in the best condition,” Mrs Muraya said.
Upon completion, Fourways Junction is expected to comprise apartments, office blocks, a shopping mall, a three-star hotel and a country club. The houses, which have been marketed and constructed by Suraya Property Group for the past four years, have been embroiled in disputes, delaying one of the city’s priciest real estate ventures.
Just two weeks ago, the latest row between Suraya Property Group and Mrs Gatabaki was sparked off by the demolition of a school building , which Mrs Gatabaki is laying claim to. Suraya Property Group said it had bought the land occupied by the school from Mr Ramesh Dhingra for Sh60 million in 2009 as it sought to fast-track the development of the gated estate.
The demolition came just three months after Muga Developers reached a Sh725 million settlement with Mrs Gatabaki, in which she forfeited her director’s title in exchange for the settlement which included 3.6 acres of land and a further Sh323 million in form of residential property once phase two is completed.
Mrs Gatabaki has so far received Sh140 million with the balance of Sh262 million expected to be paid in February next year.
The award was given in August after Mrs Gatabaki obtained a court order stopping the construction and sale of the more than 500 residential houses on the grounds that there was a scheme to defraud her.
Suraya Property Group is not new to property wrangles as they are currently embroiled in a multi-billion property tussle involving a member of the Kenyatta family and a listed investment company.
Mr Muraya moved to court in October to block the sale of 242 acres of land by Michael Muigai Kenyatta to British American Investment Company for Sh700 million.
Just last week the court allowed Mr Kenyatta to sell only sell 44 acres to clear a Sh565 million debt owed to Barclays Bank but to preserve the rest of the land pending the outcome of an arbitration.
The joint venture called Oak Valley Estate was to be a gated community in Juja, off Thika Road that was proposing to build 751 houses complete with a shopping mall, petrol station, primary school and two club houses.
The units were to comprise 279 town houses, 472 apartments and two club houses. The estate was to be built on 286 acres.