Chronicle EditorLivingstone Marufu Property Reporter —
HARARE CITY COUNCIL has issued 2500 compliance certificates for Fidelity Life Assurance (FLA)’s Southview Park first phase stands which gives them the green light to start construction.
City of Harare makes it mandatory for home seekers to have serviced stands accompanied by a compliance certificate and a title deeds document.
Fidelity has moved to that effect, to provide certificates of compliance, for its stands seekers in Southview Park phase 1.
Fidelity Life general manager (marketing) Mrs Melanie Gumbo told The Property Guide that her company expects all stands to have compliance certificates by October 2017.
“Two thousand five hundred stands already have compliance certificate from City of Harare.
A further 1 024 stands were recently inspected by City of Harare, 313 stands thereof are set to receive certification by August 16 2017 and 711 stands by August 31, 2017,” said Mrs Gumbo.
The Southview Park project has 5 300 stands in total, with phase 1 having 2 500 stands and phase 2 having 2 800.
When fully subscribed the housing development project is expected to generate over $100 million and will be instrumental in providing off-site infrastructure to the Langford Estate project.
This will be part of the cost cutting measures by the company.
Mrs Gumbo said the group expects all work on the Southview project to be complete by October this year.
She said: “Of the remaining 1800 stands in Phase 2 work is in progress with 523 stands due for inspection by 20 August 2017. The remainder will be completed by October 2017.”
Fidelity, which has successfully hedged the bulk of its portfolio in property development and investments, is confident of selling the first batch of stands from Langford Estates before the end of the year after it completed all the necessary procedures.
FLA expects to generate more than $201 million profit before tax from the sale of 11 624 Langford Estates residential stands at a price of $14 400 each.
The 834-hectare Langford Estate is also projected to grow the life assurer’s balance sheet.
Fidelity expects total revenue of close to $400 million from all its three investments, with Manresa Fidelity Park expected to bring $7 million and Southview Park and Langford forecast to generate $100 million and $300 million respectively.
The Langford Estate project could have a 250 percent return on investment.
In the long run, the life assurance company will venture into business stands.
Besides dealing with internal issues such as cost build-up, Fidelity has had to contend with low disposable incomes that are affecting demand.
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