Trou­bled Naku­matt faces evic­tion from Gar­den City

RENT Mall own­ers slap re­tailer with no­tice to va­cate premises on Thika su­per high­way

Business Daily (Kenya) - - CORPORATE NEWS - Brian Wa­suna bwa­suna@ke.na­tion­media.com

Thika Su­per­high­way-based Gar­den City Mall has joined the list of land­lords seek­ing to evict strug­gling re­tailer Naku­matt from their premises.

GC Re­tail, which owns Gar­den City, has asked the High Court to al­low it to re­pos­sess the space Naku­matt has oc­cu­pied since May 2015 over un­paid rent, ser­vice charges and util­i­ties amount­ing to Sh48.1 mil­lion.

The mall own­ers says Naku­matt has been in de­fault since June 1, 2016.

The mall owner is­sued Naku­matt with a 30-day no­tice to leave the Gar­den City premises on Oc­to­ber 6. GC Re­tail’s evic­tion plans have how­ever been ham­pered by Naku­matt’s ap­pli­ca­tion to have an ad­min­is­tra­tor run the re­tailer un­til it re­turns to sta­bil­ity.

Naku­matt is Gar­den City’s an­chor ten­ant.

“Since June 1, 2016, Naku­matt has been in de­fault of its obli­ga­tions to pay rent, ser­vice charges and util­i­ties and the par­ties have been in dis­cus­sions about rem­e­dy­ing this sit­u­a­tion.

At present, Naku­matt has de­faulted in pay­ment of rent, ser­vice charges and util­i­ties to the tune of Sh48,122,509.49 for the pe­riod be­tween June 2016 and Oc­to­ber 2017,” GC Re­tail cen­tre man­ager Ed­ward Mugambi says.

“Naku­matt filed an ap­pli­ca­tion to place the com­pany un­der ad­min­is­tra­tion, the le­gal ef­fect of which was to pre­vent GC Re­tail from peace­ably re-en­ter­ing the premises with­out the court’s per­mis­sion as an­tic­i­pated on ex­piry of the for­fei­ture no­tice,” Mr Mugambi adds.

GC Re­tail claims Naku­matt’s de­cline has af­fected traf­fic into the mall, which has in turn had an ef­fect on other ten­ants .

Gar­den City claims that pedes­trian traf­fic was on a 22 per cent monthly rise when Naku­matt was still afloat, and has now dropped to be­low a 10 per cent in­crease.

“The de­vel­op­ment di­rectly and in­di­rectly em­ploys 2,000 peo­ple. GC Re­tail has re­ceived com­plaints from vir­tu­ally all othe ten­ants in re­la­tion to sig­nif­i­cant losses suf­fered as a re­sult of re­duced foot­fall caused by Naku­matt’s in­sol­vency. Naku­matt is ef­fec­tively a failed an­chor ten­ant,” Mr Mugambi says.

“GC Re­tail has re­ceived com­plaints from vir­tu­ally all other ten­ants ” ED­WARD MUGAMBI | GC RE­TAIL CEN­TRE MAN­AGER

SALATON NJAU

EVIC­TION BID Shop­pers at the Naku­matt store at Nairobi’s Gar­den City Mall.

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