ZimParks Sues Army Company US$142 000 Over Unpaid Use Chalets

 ZIMBABWE Parks and Wildlife Management Authority (ZimParks) has taken to court a company operated by the Zimbabwe National Army (ZNA), Rusununguko Nkululeko demanding US$142 530 for chalets leased to the latter in 2018.

ZimParks is also suing Landela Safaris for US$45 000 over a similar deal in which it leased View Point Site in Victoria Falls to the private company.

In summons filed separately by ZimParks at the High Court, the agreement between the national wildlife operator and Rusununguko was entered into in 2018.

In terms of the agreement, ZimParks granted a photographic lease agreement for chalets in the Zambezi National Park to the defendant.

The court application says in terms of the agreement, US$60 000 was for the right to lease the site and was payable in equal installments over the first five years of the lease starting in January 2018.

This was in addition to annual lease fees of US$35 000 payable from January 2018 to December 2021, and payable in advance before the first day of January each year.

It was also agreed all the amounts due each year were to attract interest at the rate of 12% per annum at the interbank market interest rates.

However, despite demand letters of demand from ZimParks, Rusununguko Nkululeko failed to pay the amount.

Meanwhile, regarding Landela Safaris, in 2018, the two parties entered into a written agreement in terms of which ZimParks granted the defendant the right to lease View Point Site in Victoria Falls for the purpose of photographic safari use.

“In terms of the agreement, Landela Safaris was bound to pay annual lease fees in the sum of US$45 000 starting from 2019, and payable or before the first of January each year.

All amounts due in each year were to attract interest at the rate of 12% with Value Added Tax (VAT) added to the above amounts due.

However, according to court papers, Landela Safaris failed to pay a total of US$154 800 to ZimParks as of January 2021.

“Wherefore the plaintiff claims judgment in the sum of US$154 800 payable in Zimbabwean dollars at the authorised prevailing rate of exchange in terms of the Exchange Control Act, holding over damages calculated at the rate of US$3 750 per month, interest on the capital sum of US$1 54 800 calculated at the rate of 12% per annum,” reads part of the lawsuit.

Both matters are yet to be heard.

Source: ZimParks Sues Army Company US$142 000 Over Unpaid Use Chalets (15/06/21)

Old Mutual to build four-star hotel in Victoria Falls

 Property giant, Old Mutual Zimbabwe, through its life assurance arm, Old Mutual Life Assurance Company Zimbabwe (OMLAC), is set to construct a four-star hotel in Victoria Falls city, a Government minister revealed on Tuesday.

The deal comes as Government is working on a feasibility study for the development of bulk infrastructure in the resort city.

Victoria Falls has been designated as a Special Economic Zone, and the feasibility study will inform the viability of the proposed economic activities and infrastructure needs.

To finance and undertake the feasibility study, which will be conducted in the Masuwe Area of the Victoria Falls Economic Zone, OMLAC reportedly agreed to meet the costs amounting to US$430 948,29.

Briefing the media during a post Cabinet meeting on Tuesday, Information, Publicity and Broadcasting Services Minister Monica Mutsvangwa  said in exchange for the funding, Government will allocate the corporate giant 55 hectares of land under lease.

Once OMLAC recovers the cost of the feasibility study (US$430 948,29) it will then have to pay rentals for the land, Minister Mutsvangwa pointed out.

Old Mutual, which is already one of the country’s biggest property owners, is reportedly planning to construct “a four-star hotel with a 5 000-seater conference centre, a hospital facility, a golf course, and a shopping mall”.

Interestingly the latest development comes as Old Mutual is also involved in the construction of the Palm River Hotel in Victoria Falls.

Spencers Creek Pvt Ltd in partnership with Old Mutual Zimbabwe invested approximately US$24,6 million in land and construction of the 71-room four-star hotel, which is expected to commence operations this July.

Meanwhile, in another development earmarked for the resort city, Government also approved a joint venture between the Zimbabwe Parks and Wildlife Management Authority (ZimParks) and Zambezi Crescent (Pvt) Ltd.

The two entities are in partnership for the revamping and upgrading of all of ZimParks’ lodges at Zambezi Camp to an agreed market-related status at a total cost of US$3 009 000.

This amount will be contributed by Zambezi Crescent (Pvt) Ltd while ZimParks will provide exclusive rights to the use of the lodges at the camp and their surroundings.

The project will be implemented as a joint venture over 25 years with the parties sharing profits on a 50/50 basis, according to Minister Mutsvangwa.

She said the joint venture is set to significantly improve the performance of the Zambezi Camp Lodges which are strategically located along the banks of the Zambezi, but have been performing poorly over the years. 

Source: Old Mutual to build four-star hotel in Victoria Falls (03/06/21)

Old Mutual, Govt strike Vic Falls land deal for new hotel project

 Old Mutual Life Assurance Company (OMLAC) has reached a land deal with the government that moves the company a step further in its plans to build a new hotel and conference centre in Victoria Falls.

Government will grant the company a lease on over 55 hectares of land in the Victoria Falls Special Economic Zone (SEZ). In exchange, OMLAC will undertake a US$430 948 feasibility study on the development of infrastructure in the Masuwe area of Victoria Falls.

Mosi Oa Tunya Development Company (MOTDC), an arm of the Ministry of Tourism, will represent government’s interests in the deal, Cabinet said on Tuesday.

“In lieu of payment for the feasibility study cost, MOTDC will grant OMLAC a lease over 55 hectares of land for construction of a 4-star hotel with a 5 000-seater conference centre, a hospital facility, a golf course, and a shopping mall on land to be allocated by Government. OMLAC will then have to pay rentals after recovery of the cost of the feasibility study,” Cabinet announced.

Old Mutual is already one of the country’s largest property owners; its portfolio comprises over 500 000 square metres of property. Among these are Westgate, Highglen, Chitungwiza Centre and Nkulumane Shopping Centre.

But with slow commercial growth in the big cities, Old Mutual is diversifying away from Harare and Bulawayo. The company has previously announced that it is looking to towns such as Victoria Falls and Ngezi, where new mining developments are planned.

ALSO READ: Anticipating platinum and tourism boom, Old Mutual buys property in Ngezi, Vic Falls

In its latest financial results for 2020, Old Mutual noted the sluggish pace of new property projects in the market.

“Property market performance largely tracked exchange rate movements, with underlying property valuations relying on inputs based in a stable currency. New investments in capital projects were lower than expected reflecting the effect of both the economy’s inability to foster enough confidence to attract long term capital at the right scale and COVID19-induced limitations,” chairman Kumbirai Katsande says.

In 2019, Masuwe was one of five special economic zones demarcated by government. It measures 1 200 hectares, onto which the Ministry of Tourism plans to attract new developers.

Separately, ZimParks has reached a US$3 million deal with Zambezi Crescent to upgrade its lodges at Zambezi Camp in Victoria Falls.

“This amount will be contributed by the investor, while ZimParks will provide exclusive rights to the use of the lodges at the camp and their surroundings. The project will be implemented as a joint venture over 25 years with the parties sharing profits on a 50/50 basis,” Cabinet says.

ZimParks has dozens of lodges across the country in its national parks, but many lack modern facilities due to years of under-investment. The Parks authority’s facilities are popular with budget travelers, but the deal with Zambezi Crescent may see the refurbished facilities at Zambezi Camp catering more for the premium market.

Zambezi Crescent, owned by Mark and Amanda Bosch, runs two properties in Victoria Falls; the River Lodge Luxury Tented Suites and the Victoria Falls River Lodge. Both are exclusive properties targeted at the high-end tourist market.

Source: Old Mutual, Govt strike Vic Falls land deal for new hotel project (01/06/21)