Chinese Contractor Wants Suraya Houses To Compensate Unpaid Debts

China Wu-Yi, a Chinese contractor, now wants at least 10 houses from troubled Suraya Homes and Muga Developers to compensate a debt owed to them.

The houses in question entail phase one of Fourways Junction along Kiambu Road.

However, according to Suraya and Muga Developers say that the houses are charged to a Ksh1.76 billion loan from Equity Bank, making the case more complicated.

On its side, China Wu-Yi says had an agreement with the companies to posses some of the houses as part of the payment for its services in the project.

As at August 2011 Suraya and Muga owed the contractor at least Ksh166 millionAfter alleged talks, it was proposed that the two companies paid Ksh30 million for bill of quantities and a further Ksh57 million was to be paid in cash after the houses were sold and the balance of Ksh79 million was to be repaid by transferring four hibiscus villas and two tulip apartment units to the construction company.

Read: Real Estate Moguls, Suraya’s Ksh384 Million Lavington Houses Put Up For Auction

The payment plan was however revised such that instead of selling some of its houses to raise Ksh57 million, China Wu-Yi would instead be given more houses instead of the cash.

The deal entailed three more hibiscus villas and one tulip apartment to make it seven hibiscus villas and three tulip apartments. The construction company, however said the real estate company failed to honour the deal, only handed to it four villas and refused to transfer the title of all the house as agreed.

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