In the second half of 2018, Old Mutual completed the development of Pumula South Phase 2 and Nkulumane stands which in total numbered 1082 while in the same period the company acquired land in Victoria Falls and Hwange which is earmarked for development.
The land in Victoria Falls measures 6 hectares and is targeted for hospitality related infrastructure while the 9 hectares of land in Hwange will be commited to commercial properties. Old Mutual believes the benefits of a surge in tourism fortune driven by Victoria Falls will spillover into Hwange.
The route taken by Old Mutual, to diversify its property portfolio has been explored elsewhere in the sector to cushion yields and maximise value.
Recently Mashonaland Holdings which is overweight on CBD commercial properties, undertook to convert one of its properties in Harare CBD known as Charter House into a hotel property through a partnership with a Chinese company.
The property in question had seen occupancy level tumble to a low of 20%. Mash also believes there is prospects in the hospitality space driven by a growth in tourism.
In 2017, Zimre Properties disposed of one its CBD office property to the government of Zimbabwe. ZIMRE Centre was disposed for a consideration of circa $10 million an the proceeds were channelled towards the development of a mall known as Sawanga in Victoria Falls.
Besides chasing the tourism top dollar, property companies have been saddled with lower occupancies and yields of mainly CBD office properties as tenants preferred relatively more affordable surbuban offices.
Due to the challenging economic environment voids have gone up as some companies totally go out of business, downsize or relocate.
Old Mutual sells Corner House to ZOU, diversifies into hospitality properties
By Respect Gwenzi, Mar 31, 2019
HARARE- The Old Mutual group has revealed that it has sold-off a prime CBD office property known as Corner House located along Samora Machel avenue in Harare, to ZOU. Corner House is an 8 storey low rising glassy commercial property standing 30 metres off the ground.
The property was disposed off at a price of $11 million dollars under a lease financing deal involving Old Mutual’s property and banking arms.
After paying an initial amount of $1.99 million, settled via treasury bills, ZOU will settle the balance over the next 20 years in equal lease monthly instalments. ZOU is a distance education university in Zimbabwe established in 1999.
To cushion the financier, a clause of the agreement states that the difference will be settled at an interest rate of 6.5% plus the consumer price index or CABS mortgage rate applicable to clients in the category of the purchaser, whichever is higher.
Old Mutual’s property portfolio was valued at about $410 million as at December 2018 and 85% of the value is in commercial properties mainly, office, retail and industrial.
The financial services group is responding to shifting sector dynamics by diversifying its property portfolio into tourism and similar residential capitalising on its land bank. As at 31 December 2018 the group’s land bank was valued at $60.7 million.
In the second half of 2018, Old Mutual completed the development of Pumula South Phase 2 and Nkulumane stands which in total numbered 1082 while in the same period the company acquired land in Victoria Falls and Hwange which is earmarked for development.
The land in Victoria Falls measures 6 hectares and is targeted for hospitality related infrastructure while the 9 hectares of land in Hwange will be commited to commercial properties. Old Mutual believes the benefits of a surge in tourism fortune driven by Victoria Falls will spillover into Hwange.
The route taken by Old Mutual, to diversify its property portfolio has been explored elsewhere in the sector to cushion yields and maximise value.
Recently Mashonaland Holdings which is overweight on CBD commercial properties, undertook to convert one of its properties in Harare CBD known as Charter House into a hotel property through a partnership with a Chinese company.
The property in question had seen occupancy level tumble to a low of 20%. Mash also believes there is prospects in the hospitality space driven by a growth in tourism.
In 2017, Zimre Properties disposed of one its CBD office property to the government of Zimbabwe. ZIMRE Centre was disposed for a consideration of circa $10 million an the proceeds were channelled towards the development of a mall known as Sawanga in Victoria Falls.
Besides chasing the tourism top dollar, property companies have been saddled with lower occupancies and yields of mainly CBD office properties as tenants preferred relatively more affordable surbuban offices.
Due to the challenging economic environment voids have gone up as some companies totally go out of business, downsize or relocate.
In the second half of 2018, Old Mutual completed the development of Pumula South Phase 2 and Nkulumane stands which in total numbered 1082 while in the same period the company acquired land in Victoria Falls and Hwange which is earmarked for development.
The land in Victoria Falls measures 6 hectares and is targeted for hospitality related infrastructure while the 9 hectares of land in Hwange will be commited to commercial properties. Old Mutual believes the benefits of a surge in tourism fortune driven by Victoria Falls will spillover into Hwange.
The route taken by Old Mutual, to diversify its property portfolio has been explored elsewhere in the sector to cushion yields and maximise value.
Recently Mashonaland Holdings which is overweight on CBD commercial properties, undertook to convert one of its properties in Harare CBD known as Charter House into a hotel property through a partnership with a Chinese company.
The property in question had seen occupancy level tumble to a low of 20%. Mash also believes there is prospects in the hospitality space driven by a growth in tourism.
In 2017, Zimre Properties disposed of one its CBD office property to the government of Zimbabwe. ZIMRE Centre was disposed for a consideration of circa $10 million an the proceeds were channelled towards the development of a mall known as Sawanga in Victoria Falls.
Besides chasing the tourism top dollar, property companies have been saddled with lower occupancies and yields of mainly CBD office properties as tenants preferred relatively more affordable surbuban offices.
Due to the challenging economic environment voids have gone up as some companies totally go out of business, downsize or relocate.
