Agro-industrial conglomerate CFI Holdings will receive $26 million in compensation for its land that was compulsorily acquired by the government in 2013, court papers show.
In 2013, the government acquired CFI’s Remaining Extent of Saturday Retreat Estate measuring 1 057 hectares under the Land Acquisition Act for the purpose of urban expansion and development.
A portion of the property measuring 656 hectares is already occupied by Ushewokunze Housing Co-operative.
CFI and government have reached an agreement, with a consent order signed before Justice Herbert Mandeya at the Administrative Court on January 13 this year for CFI’s compensation.
“The respondent (CFI) is entitled to full compensation for the compulsory acquisition of its urban land,” reads the agreement.
“The compensation value for the occupied land is the sum of $ 26 240 000 at a rate of $4.00 per square meter.”
The agreement appoints CFI as the sole and exclusive developer of both the occupied property and the unoccupied 401 hectares.
CFI reported a $8.8 million loss for the full-year to September on falling revenue from key divisions and lack of working capital. It anticipates revenue growth for 2015 to be driven by property development.- The Source
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