Available court documents have revealed key details about the order issued by an Accra High Court for the recovery and auction of properties owned by former Ghana International, Michael Essien.
Earlier reports had indicated that the Commercial Division of the Accra High Court had ordered the sale of two properties located at Stephen Quarshie Crescent, East Legon, House Number 9, and House Number 204/205, Trassaco (Phase 2) Adjiringano, all in Accra.
Details of court documents shared by Gh Gossip 24 indicate that the case, resulting from a $2.1 million mortgage contract between the former footballer and Republic Bank, commenced as far back as 2020.
Republic Bank sues Essien and two others
According to the report by Gh Gossip 24, the suit was initiated by Republic Bank Limited on September 23, 2020, where Michael Essien, his wife Akosua Puni Essien, and Athena Real Estate Company Limited were named as the first, second, and third respondents, respectively.
As part of the suit, Republic Bank sought key reliefs including:
• An order to take possession of the two properties with the aid of a police escort.
• A mandate to sell off the property located at Trassaco.
Respondents response and out of court agreement
In response to the suit, the respondents, on October 28, 2020, applied to the court for an out-of-court settlement, to which the applicant (Republic Bank) agreed, leading to the court setting aside the initial orders requested by the bank.
The report noted that the out-of-court negotiation revealed that the mortgage debt owed by Essien as of July 21, 2020, stood at $2,164,345.80.
The parties agreed that the debt had accrued interest, raising the total debt to $2,310,343.
The parties agreed that the first respondent would bear the cost of legal fees, surveyors, and any other costs incurred in the recovery of the property.
The agreement underscored that maximum efforts would be applied in getting a buyer for the property, specifically a five-bedroom house located at Trassaco estimated at over $20 million.
The agreement further stipulated that the house would not be sold below the forced sale value indicated in the valuation report at $30 and $20 million, respectively.
However, if after six months following the agreement the house is not sold, the price would be reduced by 20% (a reduction of $4 million).
Currently listed on the Mortgage and Properties section of Republic Bank’s website, the Trassaco Valley property is listed as a five-bedroom residential property with features including a swimming pool, cinema, and gym, situated on a land size of 1.043 acres at President Street, Trassaco Valley Phase 2, Adjiringanor – Accra.
Meanwhile, checks indicate that the said house is currently listed on Meqasa.com, a real estate sales website, for GH₵ 225,000,000 ($14,745,584.25).
The parties agreed that the case would be brought back to court for resolution if sale attempts are unsuccessful in 12 months, while it was also agreed that the respondents, upon the execution of the agreement, shall grant Republic Bank access to the properties.
The agreement further stipulated that the bank, upon execution, shall cease the calculation of interest on the mortgage facility, while the bank shall charge costs such as legal fees on the loan and subtract various costs incurred in the process of selling off the property from the sale amount.
The agreement, according to the report, was given the authority of the court presided over by Justice Afi Agbanu Kudomor on March 5, 2021, and signed by the parties involved on February 24, 2021.
According to reports, while Essien sees an opportunity to recoup his investment and profit from the sale of the property, the court case resulted from a disagreement on processes leading to the sale and access to the property, as the former footballer had initially contracted Athena Real Estate Company to sell it off.
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source: Ghana Web
