Developer offers to pay $6m debt in kind

Innocent Ruwende Senior Reporter
Property developer Sunway City Private Limited, which owes Harare City Council more than $6 million in rates, has offered council land and water infrastructure to offset the debt.

The company owns land in Ventersburg (Sunway City.)

According to the recent minutes of the Finance and Development Committee, city officials reported that Sunway City owed City of Harare rates amounting to $6 496 880 and the company had offered the city land and water infrastructure as set off for the debt.

The company offered a piece of land known as 510 Ventersburg Township measuring 10 173 square metres valued at $50 865 and stand 511 in the same area measuring 6 373 square metres and valued at $31 865.

Sunway City also offered the city water infrastructure comprising the Letombo Pump Station and water main, which was developed by the company and was functional. The water infrastructure is valued at $2 835 885.

“The total value for the pieces of land and water infrastructure agreed upon by the parties was $2 918 615,” read part of the minutes.

“The acting chamber secretary was now requesting authority to offset part of the rates and charges bill the company owed to City of Harare with the value of land and water infrastructure. The acting chamber secretary further advised that the company had offered another piece of land which measured 28 hectares valued at $2 520 000 to council.”

The transfer of this piece of land would be done once the subdivision was completed.

The committee noted that the other piece of land measuring 28ha, which was currently awaiting subdivision had no description of the land and it was of the view that it could not proceed to make a decision when the other portion had no description.

It deferred the matter pending identification of the said piece of land.

Sunway City (Pvt) Ltd is a subsidiary of the Industrial Development Corporation of Zimbabwe Limited (IDC), which was given the mandate to develop world class integrated residential, commercial, industrial, institutional and recreational parks.

The company seeks to provide relevant infrastructural development to facilitate industrialisation and economic growth of Zimbabwe as well as regional integration and trade.

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