THE Sheriff of the High Court has auctioned Kingstons House, the headquarters of Kingstons Holdings, in central Harare, after ZB Bank secured a court order to attach and sell the property to recover a debt of more than US$300 000.
The property — which has an open market value of US$1,8 million, was sold for US$1 170 000 to an unidentified bidder of Asian origin, one of the two that showed keen interest in the multi-purpose four-storey structure.
Drew Fraser International Estate Agents conducted the auction before a crowd of more than 300 people at the Railton Sports Club in Harare.
The auction sale is subject to confirmation by the Sheriff within a week, in the event that the company does not contest it, after which ownership would be transferred to the buyer.
Even in the event that Kingstons tries to save the property from being sold by ZB Bank, the property would still be exposed to seizure by any of the other 100-plus creditors that are owed more than US$5 million by the embattled firm.
Among other Kingstons’ creditors is the Zimbabwe Revenue Authority which is owed over US$500 000, Old Mutual (over US$300 000) and the National Social Security Authority (over $200 000).
The struggling company, which is majority owned by government, is in the business of selling books, magazines, newspapers and a variety of educational and other stationary.
Meanwhile, the premises of collapsed agro-implements dealer, Tanaka Power, a company owned by one of Zimbabwe’s leading indigenous businessmen, Mike Chidziva, have been attached and sold after the 82 year old businessman failed to repay an undisclosed loan to the Infrastructure Development Bank of Zimbabwe.
The multi-purpose, double storey complex, sitting on a 4000 square piece of land located along Nuffield Road in Harare’s Workington industrial area, was last month auctioned for US$350 000, exactly what the auctioneers, Drew Fraser International Real Estate, had valued it at.
Chidziva is just but one of the latest of several high profile Zimbabweans to have their assets attached and sold after failing to meet their financial obligations as economic hardships worsen.
Among prominent Zimbabweans who have had their assets seized to satisfy judgment debts are former chief executive officer of Premier Services Medical Aid Society (and also former Zimbabwe Football Association chairman), Cuthbert Dube; businessman and politician, Temba Mliswa; president of the Zimbabwe Commercial Farmers’ Union, Wonder Chabikwa; former Zimbabwe Broadcasting Corporation chief executive officer, Happison Muchechetere; former legislator and opposition politician, Job Sikhala; and businessmen, Cecil Muderede, Simba Mangwende, Tawanda Nyambirai and Bernard Mutanga.
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