Retailer, Tuskys Supermarket has been ordered to shut down its Greenspan outlet over KSh30 million rent arrears.
Greenspan mall’s Real Estate Investment Trust (Reit) manager, ICEA Lion Asset Management (Ilam), said they resolved to shut the branch because it had failed to meet its tenancy obligation.
“Tuskys started showing signs of distress as a tenant earlier in the year with regards to the tenant’s obligations. As the REIT Manager, we have been in discussions with them to reach an amicable payment plan and warrant their continued operations at the mall,” noted ICEA.
“The payment plan has been dishonoured by the tenant. In this regard, in order to cushion the investors, the manager has instituted a process to recover the arrears as per the debt management policy and legal provisions.”
According to ICEA, the mall owner had granted Tusker Mattresses Ltd a lease on the Ground Floor 12 years starting July 2011. Tuskys occupies an estimated lease area 74,629 square feet.
Tuskys announced the signing of terms of agreement with an undisclosed Mauritius-based private equity fund for the provision of a financing facility amounting to approximately Kshs 2.0 billion in August 2020.
“Following the announcement on business capitalization on August 25, we have continued with the process of consummating the transaction that will provide Ksh.2 billion for working capital with the aim of stabilizing business operations,” Tuskys CEO Daniel Githua said on Saturday.
“We expect the move by Tuskys to secure debt financing and the reopening of its branches to cushion the retailer against financial shocks amid reduced revenues and boost investor confidence especially in Kenya’s retail sector,” Cytonn Investments comments on the development.