The Commercial Division of the Accra High Court has ordered pan-African housing financier Shelter Afrique to pay more than US$1.1 million in damages to Ghanaian developer Blue Rose Limited, after finding the institution in breach of a multi-million-dollar housing finance agreement.
In a judgment delivered by Justice Samuel Djanie Kotey, the court ruled that Shelter Afrique’s refusal to release funds under a 2016 loan deal despite Blue Rose’s full compliance with all contractual conditions constituted a clear breach of contract.
The disputed agreement, signed on 15 December 2016 in Accra, aimed to deliver 170 housing units comprising two-, three- and four-bedroom homes along with related infrastructure, for direct sale to the public. Shelter Afrique committed US$5.2 million (64% of the project cost), while Blue Rose pledged US$2.9 million (36%). A 2017 amendment adjusted the funding ratio slightly, with the developer’s equity rising to 36.83% and Shelter Afrique’s share falling to 63.17%.
Under both contracts, Blue Rose was required to fully inject its equity contribution into the project, with the funds verified on-site by Shelter Afrique before any loan disbursement. Court records show the developer met every pre-disbursement condition and commenced construction without delay.
Despite this, Shelter Afrique withheld the agreed financing for 17 months nearly half of the project’s 36-month moratorium period causing severe delays, cost overruns, and missed sales targets. In July 2018, Blue Rose formally repudiated the agreement and sought a Deed of Discharge over the project’s mortgage.
Justice Kotey rejected Shelter Afrique’s position, stating there was “no lawful justification” for its refusal to disburse the loan.
Blue Rose had sought US$1,144,669.16 in special damages. The court awarded a portion of this sum, representing verified expenses, alongside GH¢500,000 in general damages to address the impact on sales, marketing, and financial obligations. The judge emphasised that compensation should be “sufficient to erode the effect of the breach.”
The court also awarded costs of GH¢100,000 to the plaintiff.
