Erdemann halts Sh2.4bn project in row with London Distillers

Over 2,000 casual workers have lost their jobs after a tribunal stopped construction of the proposed Great Wall Gardens Phase Three project by Erdemann Property Ltd as its wrangles with alcohol maker London Distillers Ltd persist.

The Machakos National Environment Tribunal gave the order on October 18 that effectively temporarily halts development of the Sh2.4 billion project whose groundbreaking was presided over by Machakos Governor Alfred Mutua in August this year.

The real estate firm is now urging home owners who had already bought units at the Athi River-based property to be patient as it looks to resolve its deepening row with the liquor distiller.

“From the evening of Friday we stopped the work at the site of the proposed Great Wall Gardens Three. We appeal to the general public to understand that the construction has been temporarily stopped,” said Erdemann head of planning John Rajwayi.

The real estate firm says it has suffered a major setback as it has sold over 200 units to various home buyers who are now anxious about the returns on their investments.

Mr Rajwayi said the firm is counting losses of over Sh10 million per day as stalled equipment lies idle at the site.

The project is expected to have over 688 units that will be sold at costs ranging from Sh2 million to Sh3 million.

London Distillers and Erdemann have been embroiled in a dispute over the brewer’s alleged air pollution and disposal of waste into waters of River Athi, which the developer says has affected its housing units.

The maker of Safari Cane and Meakins spirits argues that the housing project has ignored a buffer zone provided by law, saying the project construction adjacent to the factory is a breach of industrial and residential planning regulations.

The manufacturer reckons that Erdermann should not have been allowed to put up residential houses in an area where there are industries.