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Local firm strikes major residential property deal

24 Jul, 2020 - 00:07 0 Views
Local firm strikes major residential property deal

The Herald

Business Reporter

LOCAL private firm, Tavaka Civil Engineers and Building Contractors has struck an agreement with real estate giant Rawson Properties Group Zimbabwe franchise holder, Ten Axis Property Development, on a potential mega residential property development deal to enhance access to decent housing.

The project entails construction of a shopping mall to match Sam Levy and a residential area with more than 3 000 stands measuring at least 2 000 square metres. The project will have state-of-the-art schools.

Tavaka corporate services director Sebastian Mubvumbi told The Herald Finance & Business in an interview this week his company would be responsible for securing mostly private land for development while Rawson Property Group would avail requisite funding for the works.

Mr Mubvumbi said Tavaka will seek and introduce land available for development to Ten Axis, facilitate all civil engineering works, construction, drawings and approvals by local authorities and carry out all civil works to the satisfaction of a consultant.

The company will thus undertake site development that include tarred roads and sewer drainage systems or septic tanks where necessary, with a view to deliver complete packages ready for occupation.

On the other hand, Ten Axis will take responsibility for sourcing all the requisite funding for development of the project as well as manage and execute all the property development activities outside of civil engineering construction works.

This entails topographical works, title surveys, environmental impact assessment, project management, capital raising, marketing and selling, title transfer, acquisition of property identified for development and approvals thereof and signing property development agreements, partnerships and joint ventures.

The parties to any consummated property development deal will thrash out individual revenue or units sharing agreements depending on nature of specific projects.

Mr Mubvumbi said, while focus was mostly on developing unencumbered private land, the parties to the deal were open to partnering Government in the provision of housing, where the narrative of “affordable housing for all” has lost steam.

“It is our wish and desire to make sure in every city and town we develop gated communities and shopping malls, but this will depend on the availability of the land.

“If local authorities and Government come forward with land, who are we to deny partnering them in order to reduce the housing backlog. In an economy like ours we can’t be cry-babies everyday no need to be reactive we need to be proactive,” he said.

Mr Mubvumbi said those with free funds desirous to invest in immovable property were free to consult his company, which is currently in negotiations for a major project in the north of the capital city, Harare.

He said the company was also in talks for similar projects in Marondera, Rusape and Mutare.

It is also ready to undertake such projects across Zimbabwe, including major towns and cities such as Bulawayo, Gweru, Kwekwe and Kadoma.

Reports indicate that Zimbabwe needs an estimated 15 to 20 years to clear its 1,4 million national housing backlog, which has been ballooning in recent years as a result of increased rural to urban migration and the high cost of residential housing construction.

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