Tycoon sucked into Buyanga case
Sunday, 04 March 2012 00:00
Sunday Mail Reporter
Business tycoon Mr Nicholas Van Hoogstraten has been sucked into fugitive Frank Buyanga’s fraud case after one of his investment vehicles was accused of illegally granting loans to people. A High Court application made by the Attorney-General’s Office last week seeking to bar Buyanga from selling 43 properties claims that Mr Van Hoogstraten’s company, Messina Investments, could have been used to defraud people.
The investigating officer in Buyanga’s fraud case, Chief Superintendent Patrick Majuta, said in court papers that Messina Investments extended loans to different people between September 2009 and October 2011.
“During the course of my investigations, I noted that one Akim Ndlovu, a Zimbabwean formerly employed (by Buyanga) as information and technology personnel (sic) from September 2009 until October 2011, recorded all (bank) transactions relating to Buyanga’s illegal business affairs,” said Chief Supt Majuta.
The documents state that a United Kingdom bank account, allegedly belonging to Mr Van Hoogstraten, extended loans to some of the victims Van Hoogstraten is ranked among the country’s wealthiest people and controls a 35 percent stake in the Rainbow Tourism Group (RTG).
His stake in the hotel group is held through Banhams Investments (Private) Limited, Messina Investments and Willoughby’s Finance (Private) Limited.
The RTG is the second largest tourism group in the country and it owns Rainbow Towers Hotel, Harare International Conference Centre, a number of hotels across the country as well as 60 percent stakes in Touch the Wild Resorts and Tourism Services Zimbabwe.
Labels: FRAUD, REAL ESTATE
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Zambians must shift their mindset regarding property, advises Moronell
By Mutale Kapekele
Tue 17 Aug. 2010, 04:00 CAT
ZAMBIANS should take advantage of available home ownership schemes, Hawkwood Property Investments managing director Alfredo Moronell has advised. In a statement, Moronell observed that the country had many housing schemes that could empower citizens with decent housing. He stated that there was need for the Zambian public to shift their mindset regarding property.
“Many people would rather look at the property market from a safe distance and don’t even bother to enquire because they already have it in their minds that property is expensive,” Moronell stated.
“This is sad because there are different terms that would enable people own houses if only they were adequately informed. Many financial institutions and property development companies have developed affordable home ownership schemes.”
He described as unfortunate the perception that property ownership was a preserve of the elite in society.
Moronell urged those involved in property development to develop communication strategies that would change the public’s perception on ownership if the industry was to grow and empower those in the lower income group.
He stated that Zambia had a huge land resource that could support the development of property that would raise living standards and contribute positively to economic growth. Moronell stated that the construction sector, if managed properly, could be a major economic driver in the country as it had vast tracts of undeveloped land. The construction sector has in the last decade featured as the fastest-growing sector in the country at 20 per cent annual growth rate.
Labels: ALFREDO MORONELL, REAL ESTATE
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Property market bubble to burst
By Bright Madera
THE property market bubble in 2009 is about to burst due to a decline in property prices on the local market.
Investors are unclear as to whether the current market prices for properties have bottomed out, or there still exists a downward potential in price movement.
Uncertainty on the direction of property prices has brought in indecisiveness as buyers and sellers remain skeptical.
Between February and September this year, residential property prices on the local market, depending on its quality and location, shed off between 30 percent and 50 percent from their previous year’s prices.
Kingdom Stock Brokers said, "It is our strong assertion that the current market prices offer the greatest opportunity for buyers to acquire properties at a discount to their intrinsic values.
"Once the economy improves from its current situation as largely expected, building societies are anticipated to resuscitate mortgage financing thereby boosting the currently subdued demand".
Going forward, on the back of improved liquidity on the economy, property prices are bound to firm from their current levels because of limited property stock brought about by a decade of inactivity in the property development sector.
While low activity has been attributed to low liquidity levels, some prospective buyers are still waiting for the market to really bottom out before they come in.
The tragedy with the property market, like any other risk markets such as the equities market, is that investors will never be able to establish with certainty whether the market has reached its peak or its rock bottom.
However, the prevailing liquidity shortages that have constrained demand on the property sector make it a ‘buyers market’.
The few available buyers have the upper leverage to negotiate and get properties at a bargain.
Some analysts say because of the absence in mortgage finance, the market might further slide by as much as 15 percent from current levels.
Meanwhile — construction is still struggling
to lift up even though material prices have come down from 2008 levels and availability improved.
Building materials are still expensive in the country compared to the region.
Although basic materials such as cement and bricks are now reasonably priced, the majority of finishing materials are still imported and expensive.
Prospects of building material prices further coming down are there and developers might want to use this time to buy land and develop later when construction costs are reasonable and property prices are on the rise again.
Labels: REAL ESTATE
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Copperbelt is yet to see classical developmental structures – Musonda
By Kabanda Chulu
Tue 27 Oct. 2009, 04:00 CAT
PHOENIX Materials Zambia and HBW of South Africa have formed a joint venture to develop the proposed US $ 160 million mixed use development facility comprising a shopping mall, hotel, housing units and convention centre in Kitwe.
Announcing the formation of TGP Properties Limited, Phoenix Materials chairman Phesto Musonda said there was need to put up modern structures that would contribute effectively to the country's economic development. The proposed project would be constructed near Itimpi opposite Chingola Road Cemetery.
In an interview on Sunday, Musonda said the Environmental Council of Zambia (ECZ) had approved the impact assessment and project construction would commence early next year.
“We are developing this project which is themed as the 'Copperbelt City' and it will be a mixed use development facility costing US $ 160 million and will comprise housing units, a 210 room hotel, 134 retail shops, six screen cinema halls and food courts, conference facilities among other structures. In fact this will be the largest single investment on the Copperbelt outside the mining industry,” Musonda said.
“And our contractors shall soon move on site since ECZ has approved our impact assessment report but we are applying to government to give us the Investment Protection and Promotion Agreement (IPPA) because this is a huge investment and funding is already secured.”
He said the project would attract other developmental activities around it that would result in creating employment opportunities.
“In recent years, the Copperbelt region is yet to see classical developmental structures in form of modern structures and this is why we want to develop a 'copperbelt city' with new facilities that will contribute effectively to the economic development of this country and this project will take 30 months to be completed when we begin construction in the first quarter of 2010,” said Musonda.
And ministry of commerce director of industry Siazongo Siakalenge said the government was ready to issue out IPPA licences so long the prospective developers or investors present their proposals on time.
“We are ready and our negotiating team is ready to consider proposals and decision can even be made within seven days,” said Siakalenge.
South Africa-based HBW are also the owners and developers of the Manda Hill shopping mall in Lusaka.
Labels: JOINT VENTURES, PHESTO MUSONDA, REAL ESTATE, RETAIL
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‘Zim property market booming’
Ralph Mutema
Tue, 18 Nov 2008 21:24:00 +0000
THE property market in Zimbabwe has witnessed a boom despite the current economic challenges being faced by the country, the Zimbabwe Guardian has learnt.
According to
Andrew Golding, chief executive of
Pam Golding Properties, the property market in Zimbabwe has only now turned from a sellers' to a buyers' market.
Speaking at a press conference Tuesday, Golding said property still remains an important form of investment and many foreigners have expressed interest in the Zimbabwe property market.
"Property is still seen as an important form of investment, with high interest among South Africans as well as Russian buyers," said Golding.
"Despite the global economic crisis, Zimbabwe has yet to experience depreciation in house prices and the property market remains relatively unscathed," he added.
He said that buyers are mainly seeking investment property in the price range from US$200 000 to US$450 000 for residential property and from US$450 000 upwards for commercial property.
Golding said that his company was marketing a state-of-the-art tobacco factory for US$15-million.
He expects the property market to continue on a boom for the foreseeable future.
Labels: PAM GOLDING PROPERTIES, REAL ESTATE, ZIMBABWE
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SA real estate company eyes Zim, Zambia markets
Business Reporter
SOUTH African real estate firm Chas Everitt International has announced its plans to open offices in Zimbabwe and Zambia. According to reports managing director of the group Mr Berry Everitt said the move was necessitated by the increased foreign interest in property in the whole of the Sadc region.
"Indeed, we are already getting enquiries for Zimbabwe properties to buy and to let and we believe our timing in opening a Harare office is spot on," Mr Everitt said adding they would look more at commercial properties.
Zimbabwe is second to South Africa in terms of infrastructure (African context) development and offers a greater scope to increase revenue, as the property is cheap in US dollar terms.
An investment analyst with a local bank said, "positioning a company’s presence through buying property is the best option at the moment particularly industrial and commercial property as it provides the necessary increase in value to offset the effects of inflation".
Normally an investor in commercial property can expect some growth component of return in addition to their income.
Typically these growth returns are in line with inflation and relatively modest.
However, while buying commercial property is a good hedge against inflation, Zimre Property Investment’s managing director Mr Edson Muvingi said rental growth in the country is subdued because of rental freeze and price controls as compared to the region.
According to a survey Angola was leading with a rent of US$100 per square metre and Zimbabwe lagging with US$1 per square metre. The average for the region was US$15 per square metre.
Mr Muvingi said: "Zimbabwe’s disparity with the other countries represented a huge opportunity for the group to improve its property performance".
ZPI says it would grow its retail and residential portfolio while Pearl Properties managing director Mr Francis Nyambiri said it remained the group’s desire to diversify the portfolio into leisure sector through new developments and acquisitions.
Labels: REAL ESTATE, SOUTH AFRICA, ZAMBIA, ZIMBABWE
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BBZ enters into partnership with estate agents
By Joan Chirwa
Friday September 14, 2007 [04:00]
BARCLAYS Bank Zambia (BBZ) has entered into a partnership with local real estate agencies in the provision of home loans to the Zambian people. Bank managing director Danie Nel said the institution was trying to allow participation of as many stakeholders as possible in its operations for positive contribution to economic development.
“This collaboration with estate agents is a significant achievement for Barclays Bank Zambia. The bank needed to find a vehicle that could be used to give long-term investment opportunities. There is a significant amount of development happening in Zambia such as investments in property,” said Nel during the launch of the collaboration between BBZ and estate agents in Lusaka on Wednesday.
“We are increasingly allowing people that do not work for the bank to contribute in a positive manner. We will allow the estate agents to sell and market the product for us so that as many people as possible can have access to the product in an effort to provide decent housing to Zambians.”
During the same function, lands minister Bradford Machila said the government was struggling to meet the demand for housing in the country due to inadequate resources.
“Housing has been made a priority for government,” Machila said. “It is good to see Barclays Bank working with various real estate agents to make housing available to the people through home loans.”
And Hardcastle Realtors principal consultant Christopher Kayebeta, who spoke on behalf of other estate agents, called on the government to reduce taxes on construction materials and processes.
Labels: BARCLAYS BANK, REAL ESTATE
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