CastleGate raises $7m from 150 housing unit sale
CastleGate Estate Limited, an indigenous privately owned real estate company, has signed a sale and purchase agreement with IDES Limited for one hundred and fifty units of its brand of uncompleted houses worth seven million dollars.
Speaking to journalists after the signing and handing over event, Mr Mohammed M. Ibrahim, Managing Director, said it was crucial for the company to raise funds to position itself strategically to scale the challenges and take up the opportunities in the sector.
“It is true that the company is faced with some financial challenges, the only way to resolve these is to let off some its properties for a new company to complete and sell to raise funds for immediate, medium to the long term, “he said.
He recounted how the Company’s “Build, deliver and spread payments over 15 years’ project”, affected the company and nearly plunged it into insolvency.
“CastleGate used to be a cynosure and a benchmark within the real estate space but now a pale shadow of itself. It is our avowed claim that now that we have found a new buyer in IDES Limited, we are very happy about the turn of events,” he said.
According to the Managing Director, despite efforts by the old administration to address the growing problems, it was difficult and practically impossible to find a lasting solution.
He made reference to companies both local and foreign which found themselves in the same problems but were able to pull through mostly through innovative ways such as what CastleGate had done.
He said even though most of its clients were aggrieved to the extent that they resorted to the laws courts for redress, it is the plan of the new management to engage all aggrieve parties and schedule a realistic plan to offset all its indebtedness, adding that “it is our prayer that they would listen to us and give us another chance.”
Mr Cisse Abdoulaye, who stood in for IDES limited, lauded CastleGate for its forthrightness and assured management of their resolve to quickly complete all the houses and urgently turn them into the needed cash for CastleGate to liquidate and recapitalise.
He commended the government of Ghana for its initiative to create an enabling environment for the housing industry to thrive saying” this move does not only give credence to the government’s avowed aim of bridging the housing gap but would go a long way to foster relationship and the spirit of camaraderie among the industry players.”
Mr Abdoulaye indicated that the houses would be redesigned and packaged for a secured lifestyle and upscale living in Ghana.
Source: GNA