Hundreds of homebuyers signed up for deals with Access Real Estate to buy properties under Pacific Link Ethiopia Real Estate should be paid compensation for homes undelivered, a Judge at the Federal High Court ruled.

Disgruntled homebuyers filed civil suits against the developers, claiming reimbursements of the money paid along with interests and punitive damages. Some buyers paid the full prices of the houses sold by Access Real Estate and Pacific Link, the latter 40pc owned by Access.

Judge Yihenew Kelil ordered that close to 170 of these buyers be reimbursed for the advance payments, expenses incurred during litigations, and interests. The interest is calculated according to the contracts the developers and buyers made. In most cases, interest rates involving legal matters go over 12pc, but if nothing is stated in the contract, the Judge can decide on a nine percent, according to Arba Beyene, a legal expert who worked in a land management bureau for over three years.

Judge Yihenew ordered the companies to settle 1.9 million Br in legal expenses.

The ruling was made a month ago, eight years after buyers took their case to court, accusing Ermias Amelga, the main promoter, in absentia.

Pacific Link had planned to build seven-storey luxury apartments, Ayat Eastview, on a 50,000Sqm plot, past the Ayat neighbourhood. Its managers had promised to complete and deliver homes in two years, beginning in 2011. Pacific Link had contracted Access Real Estate to build the houses; Access had collected 1.4 billion Br from buyers within a few years of its incorporation.

The plaintiffs appealed that each contract signed with Access Real Estate be nullified and refunded.

Pacific Link Real Estate was involved in the same case in 2013. Close to 137 aggrieved homebuyers brought charges against the company, claiming 73.4 million Br in punitive damages for failing to deliver homes.

First incorporated in 2007 with paid-up capital of 50,000 Br, Ermias was a significant shareholder of Access Real Estate with a 92pc stake. Four other shareholders contributed equity of 1,000 Br, before the company went public, mobilising 35 million Br in equity from 640 shareholders. It faced multiple civil suits brought against it and its subsidiaries over the decade.

Access Real Estates’ downhill slide escalated after its CEO, Ermias, was arrested for issuing a cheque without sufficient funds in the company’s account, forcing him to leave the country in 2014. This led to homebuyers rushing to the Access Real Estate offices, demanding their money back.

Amidst this trouble, homebuyers from each site organised themselves into committees to decide how to recover their costs.

Azeb Worku, an artist and TV personality, paid 1.5 million Br for an apartment planned on African Avenue (Bole Road), on a site behind Mega Building.