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Erdemann had moved to court seeking to stop the auction terming the sale as illegal and unprocedural.
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It had sought similar reliefs at the High Court but were declined.
Image: FILE
A property developer has warned against the purchase of units/ apartments that were put up for auction on May 6, 2024, by the KCB bank through Garam Investments Auctioneers.
In a notice published by the Daily Nation on May 8, Erdemann Property Limited listed 99 two and three-bedroom apartments, notifying that they are fully sold.
The apartments at Greatwall Gardens Phase I are located at Shangai Road off Mombasa Road Athi River area in Machakos.
"Erdemann Property Limited wishes to notify/warn any perspective buyer of the units/apartments that the named units/apartments are fully sold to buyers who have legally occupied," the notice reads.
The developer added that the units are subject to several ongoing court cases including two at the Nairobi High Court, one at the Nairobi Court of Appeal, one at Machakos High Court and three at Mavoko Chief Magistrates' Court.
"The EPL therefore warns any perspective buyer of the said apartments that any person(s) purchasing the said apartments aforesaid shall do so at their own risk and subject to the outcome in court of the aforesaid cases," it stated.
Erdemann further informed that any purported sale of the said apartments pending court cases is unlawful, illegal and fraudulent.
In its auction announcement, Garam Investments Auctioneers said the sale would take place at their offices in Western Heights, Westlands on May 21.
It had listed some 78 two-bedroom units with some costing Sh3.8 million and others Sh3.9 million, each.
In April, in one of the court battles, the Court of Appeal declined to issue temporary orders stopping the auction of the Greatwall apartments.
Erdemann had moved to court seeking to stop the auction terming the sale as illegal and unprocedural.
It had sought similar reliefs at the High Court but were declined.
KCB sought to auction the apartments to recover an outstanding debt of Sh2 billion, which dates back to 2015.
Then, EPL secured a facility loan of Sh1.3 billion from KCB Bank during the construction of 2,190 units.
Part of the agreement in the letter of offer from KCB Bank was that the developer would relinquish 100 units as security.
Unable to meet the loan obligations, the bank issued Edermann with a letter demanding the balance which resulted in the impending auction.