Dawn Properties is set to acquire 50 percent of Makasa Sun Hotel property in Victoria Falls from Barclays Bank of Zimbabwe while negotiations are ongoing for the other half from Barclays Pension Fund. The property is trading under African Sun’s Kingdom Hotel. Barclays Bank last week announced that it had sold its 50 percent stake in Makasa Sun. In a statement, Barclays Bank said that Dawn Properties will pay $7 500 000 within 30 days of concluding on the conditions precedent from which selling costs shall be paid.
The balance is to be paid in instalments over a period of up to 12 years on interest charges which will be reviewed annually in reference to an agreed interest rate benchmark. Currently the majority of the Dawn Properties’ portfolio is in hotel properties which are operated by African Sun Limited.
The company also owns over 300 hectares of residential land earmarked for development. Barclays said the proceeds of the sale shall be applied towards other banking assets.
“The value of the net assets which are the subject of the transaction was previously reported at $14,6 million as at June 30, 2015. There will be no significant effect on the net assets per share of the company except to the extent of returns that will be generated from the investment of the proceeds going forward,” the bank said.
“The parties to the transaction are now in the process of fulfilling conditions precedent stated in the agreement of sale,” Barclays bank said.