Castle Gate Estate Limited, an indigenous privately owned real estate company, has signed a sale and purchase agreement with IDES Limited for the purchase of 150 unit of its brand of uncompleted houses worth about US$7million.
Speaking after the signing and handing over ceremony at the company’s offices in Dzorwulu, Accra, Mohammed Ibrahim, Managing Director, Castle Gate Estate, said it was crucial for the company to embark on this move in order for it to raise enough funds to position the company for growth.
“It is true that the company is faced with some financial challenges, the only way to resolve these is to let go of some of our properties for a new company with the financial wherewithal to complete and sell to raise funds for immediate, medium and long-term solutions,” Mr. Ibrahim said.
He recounted how the company’s “build, deliver and spread payments within 15-years project”, affected the company and nearly plunged it into insolvency.
“It is our avowed claim that now that we have found a buyer in IDES Limited we are very happy about the turn of events,” he added.
Mr. Ibrahim indicated that despite efforts by the old administration to address the growing problem, it was difficult to find a lasting solution to the country’s housing challenges.
He made reference to companies both local and foreign who have once found themselves in this same quagmire but were able to pull through, mostly through innovative ways such as what Castle Gate has done..
He said even though most of its clients are quite aggrieved to the extent that they have resorted to the law courts for redress, it is the plan of this new management to engage all aggrieve parties and schedule a realistic plan to offset all its indebtedness.
Abdulai Cise, who represented IDES Limited, lauded Castle Gate for its forthrightness and assured management of their resolve to quickly fix all the houses and urgently turn them into the needed cash for Castle Gate to liquidate its indebtedness and also recapitalized itself.
He commended the Government of Ghana for its initiative to create an enabling environment for the housing industry to thrive.
Mr. Cise noted that the houses would be redesigned and packaged for a secured lifestyle and upscale living in Ghana.
