Cigarette stub started fire that destroyed decommissioned coaches worth US$40,000 – NRZ

THE National Railways of Zimbabwe (NRZ) has established that a cigarette stub caused an inferno that destroyed decommissioned coaches at its main station in Bulawayo in September.

40 coaches were destroyed in the blaze that engulfed the NRZ workshop with initial reports by the parastatal suggesting foul play.

This incident followed another fire that involved coaches in Harare, raising suspicions of arson attacks.

Appearing before the Parliamentary Committee on Public Accounts, NRZ general manager, Respina Zinyanduko said internal investigations point to a cigarette stub having been the cause of the fire.

“The initial report that I got from loss control as well as the report I got from a commission of inquiry that we set, it constituted of different departments of NRZ has indicated that it could be a fire was as a result of some employees, because we do not allow some people to smoke at work, some employees could have taken shelter in those coaches trying to hide and smoking a bit.

“One of them might have left a stub that was still burning and there was the wind; it then resulted in the spread of fire,” said Zinyanduko.

The decommissioned coaches had exceeded their operational life span and the NRZ was awaiting their disposal as scrap.

Zinyanduko told the Committee that NRZ lost US$40 000 in the value of the coaches as a result of the fire.

“The value that was lost was minimal because we had taken the seats from these coaches and they were fitted to those which were operational. These were more like shells that were parked with the intention to refurbish them in the future or disposing of them.

“The value that was there was on the scrap value of the assets, I examined the coaches one by one myself and they are still in a condition in which we can dispose of them as scrap metal. Those coaches in our books were carrying a value of about US$1,000 each because they were just shells,” said Zinyambuko.

Source: Cigarette stub started fire that destroyed decommissioned coaches worth US$40,000  – NRZ (30/10/24)

After incurring losses for years, NRZ in process of cancelling “toxic” 90s joint venture with Landela Safaris

 NATIONAL Railways of Zimbabwe (NRZ) is in the process of terminating a joint venture agreement with Landela Safaris after the parastatal suffered losses during the deal.

NRZ entered into a joint venture with Landela Safaris to lease its prime land in Victoria Falls in 1998.

According to the agreement, Landela Safaris would construct two houses and lodges, along with a commercial centre being developed on the land.

NRZ general manager, Respina Zinyambuko told the Public Accounts Committee Monday that the parastatal may have been prejudiced in the joint venture.

“What we have done is we wanted them to be compelled to submit the financials then we compare what we have so that at least we can see the potential prejudice. In that JV NRZ has 26 percent so it is a minority shareholder,” said Zinyambuko.

Zinyambuko told the Committee that NRZ are in the process of terminating the agreement which is currently under arbitration.

“We have realized that JVs will be very difficult for us while concentrating on our operations as NRZ people can overstate the operational costs and everything and you end up with nothing.

“So we have revisited all these JVs and some we have terminated and opted for outright lease. This one we are terminating the joint venture because we have realized we are not getting anything. Instead, we are opting for this other arrangement,” said Zinyambuko.

The national railway operator has been reportedly losing funds after years of mismanagement of its assets portfolio.

The management and board are making efforts to plug in the losses which will see the parastatal gaining profits from its ventures.

NRZ board chairperson Mike Madiro told the PAC committee that the Landela Safari deal has become “toxic”.

“What we have learnt is there were serious governance issues with this joint venture to the extent that there were no board meetings.

“The relationship between NRZ and the other parties was ‘toxic’ to the extent that when the management was trying to convene the board the other parties were refusing,” said Madiro.

Source: After incurring losses for years, NRZ in process of cancelling “toxic” 90s joint venture with Landela Safaris (29/10/24)

Unified Councils Pension Fund seeks US$3m for new hotel

 LOCAL pension fund, Unified Councils Pension Fund (UCPF), intends to raise more than US$3 million through a private placement to build a new hotel in Victoria Falls, NewsDay Business can report. UCPF is a retirement fund that operates prime land in Victoria Falls valued at US$1 million. A prospectus prepared by UCPF financial advisors, Switzview Wealth Management, showed that UCPF intends to raise a total amount of approximately US$2 995 726,40 by way of a private placement. UCPFs proposed investment in a hotel project comes after the Zesa Pension Fund and Cresta Hotels partnered to build a four-star hotel in Victoria Falls through the Mosi-oa-Tunya Real Estate Investment Trust.

“The Unified Councils Pension Fund is a retirement fund operating in Zimbabwe that has prime land in Victoria Falls, valued at US$1 000 000. UCPF is considering investing in a hotel and is inviting prospective investors to participate or co-invest in the project,” the prospectus read.

“UCPF intends to raise a total amount of US$2 995 726,40 by way of a private placement, representing a 49% equity stake in the project.”

The generated funds will be used to build a three-star hotel.

The project has since obtained an environmental impact assessment approval, development permit approval, plan approval, detailed architectural designs, title deeds, property valuation report and the prescribed asset status, among other requirements.

Switzview corporate finance manager Batanai Matsika told NewsDay Business at the Zimbabwe Association of Pension Funds 5th edition of the Principal Officers and Chairman’s Convention in Bulawayo that constructing the three-star hotel would cost US$6,1 million.

“So, because of their cash contribution, which represents 16% of the cost (US$976 000), they would top up the other US$2,1 million and that will give them 51%. So, the other 49% is basically US$3 million that we are capital raising for,” he said.

“That would give investors a 49% share in the hotel. Cresta Hotels will be the operator and will be managing on a long-term basis. It’s going to be a 57-bed hotel. And it has a strategic location. In terms of the projected rate of return, we’re looking at 18,58%, which is a very good rate of return and a payback period of 12,4 years. So everything has been put in place.”

Cresta Hotels already operates six other hotels, which include Cresta Churchill (Bulawayo), Cresta Sprayview (Victoria Falls), Cresta Jameson, Cresta Lodge and Cresta Oasis (all in Harare) as well as the recently opened Rupurara in Masvingo.

Matsika said the fact that the project had prescribed asset status meant insurance companies and other pension funds could also participate or co-invest with UCPF in the development of the project.

“We’re now in the capital raising phase. So, once we secure or we receive commitments, we are hoping to start the project in February and it will take roughly 18 months to complete the whole project, about one and a half years. But from that time, of course, the operator will come through and start to manage,” he said.

“We think there’s a strategic logic to attract like-minded pension funds because this is a project that’s being run by UCPF, so there’s a strategic fit in terms of alignment and all. It would make sense for other pension funds to come in. But any other investor is open.”

Source:  Unified Councils Pension Fund seeks US$3m for new hotel (10/10/2024)

See Also

Victoria Falls Bits and Blogs (12th January 2023) Tourism sector attracts US$300m investment.

Victoria Falls Bits and Blogs (25th May 2024) Multi-million-dollar hotel set for Vic Falls.

Victoria Falls Bits and Blogs (10th October 2024) Another Cresta managed hotel for Vic Falls as UCPF seeks US$2.9m.

Victoria Falls Bits and Blogs (11th October 2024) Unified Councils Pension Fund seeks US$3m for new hotel.

Victoria Falls Bits and Blogs (9th November 2024) Victoria Falls to get two new upmarket hotels.

Read more on the Keep Victoria Falls Wild website.

Another Cresta managed hotel for Vic Falls as UCPF seeks US$2.9m

BULAWAYO – The Unified Councils Pension Fund is looking at raising US$2.9 million through private placement for the construction of a three-star hotel in Victoria Falls, which will be managed by Cresta Hotels.

The UCPF Victoria Falls Hotel is set to be a three-star facility located on a picturesque 1.4-hectare site at stand number 1354 in Victoria Falls, which is next to the site of the ZESA Pension Fund resort, which will also house another Cresta Hotel facility. The sites are near Mbank Manor Capital raising promoter Switzview Asset Management’s Batanai Matsika said Cresta would manage both sites. ZESA PF will raise its fund through a development REIT.

Cresta will manage the hotel, which will operate under a long-term lease agreement. The construction of the hotel is expected to take 18 months, with plans to create a facility that not only enhances the local tourism landscape but also contributes to the economic growth of the region.

With a total development cost estimated at US$6.15 million, the hotel will feature 57 beds, including 52 standard units, three family units, and two luxurious suite units. The project aims to provide modern and efficient hospitality services tailored to meet the needs of both local and international travellers.

The private placement offers investors an equity stake of 49% in the project, with UCPF contributing US$1 million in land and US$2.15 million in cash. This collaborative investment model aims to attract a diverse range of investors looking to capitalize on the growing demand for quality accommodation in Victoria Falls, a UNESCO World Heritage site known for its breathtaking natural beauty and adventure tourism.

“This project represents a significant opportunity for investors to engage in a high-potential hospitality asset in a prime location,” said Matsika. “With the prescribed asset status, we believe this investment will not only yield attractive returns but also contribute positively to the local community and economy.”

The projected rate of return is 18.58%, and the payback period is 12.4 years.

Source: Another Cresta managed hotel for Vic Falls as UCPF seeks US$2.9m (9/10/2024)

See Also

Victoria Falls Bits and Blogs (12th January 2023) Tourism sector attracts US$300m investment.

Victoria Falls Bits and Blogs (25th May 2024) Multi-million-dollar hotel set for Vic Falls.

Victoria Falls Bits and Blogs (10th October 2024) Another Cresta managed hotel for Vic Falls as UCPF seeks US$2.9m.

Victoria Falls Bits and Blogs (11th October 2024) Unified Councils Pension Fund seeks US$3m for new hotel.

Victoria Falls Bits and Blogs (9th November 2024) Victoria Falls to get two new upmarket hotels.

Read more on the Keep Victoria Falls Wild website.