Debt-ridden real estate developer, DN International, is struggling to beat the deadline to reimburse its clients.
A total of 19 clients bought the developer’s houses at Hill View Estate located in Masaka, Kicukiro District but were never handed ownership documents as promised.
Some of the clients had paid the full amount of Rwf 55million that each of the units cost to DN International.
Hill View Estate was constructed with a loan from Fina Bank Rwanda. However, the developer failed to pay back as agreed in the contract, compelling the bank to start procedures to auction the houses.
This led to the arrest of the Chief Executive Officer of DN International, Nathan Lloyd, who was later released after he agreed with the bank to pay back the full amount loaned to his firm totaling Rwf 415million in two installments.
The developer was supposed to reimburse the first installment of Rwf 100million in 45 days effective August 11 implying that the deadline for repaying the first installment was September 24.
The estate, which has a total of 28 housing units, cost a total of over Rwf 800 million.
“We didn’t make the payment within the scope of the required time but we had a mutual understanding with the bank to give us more days. So far, we are expecting to finalise the payment and the processing on the first nine title deeds,” said the Managing Director of DN International Joseph Kapukha.
He added that that the first nine title deeds will be issued out before the end of October.
Regarding the second payment of Rwf 315million, the memorandum of understanding signed between the bank and the developer indicated that the amount was also supposed to be paid back within the next 45 days after September 24.
This implies that the second deadline is expected to elapse on November 8.
According to Kapukha, DN International will honour the second deadline since they have put in place measures to raise funds and clear with the bank.
“Raising the initial Rwf 100 million was a little difficult considering the time we were given, but we also took advantage to strategise to pay the next installment. I assure our clients that they will have their title deeds soon,” he said.
Efforts to contact the bank were fruitless by press time as the only person authorised to comment on the issue, the Managing Director of Fina Bank, Rao Balivade, was said to be on holiday in India.