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houses in Harare.
The housing project, Fidelity Life Park, will be built over two phases on a 34-hectare plot in Manresa. The first phase to cost US$2,8 million I already underway.
The second phase to be built on a 33-hectare plot adjacent to Goromonzi Rural District Council is awaiting regulatory approval.
Group chairman, Mr Solomon Tembo, speaking at the groundbreaking ceremony, said the project period was 14 months.
He said the group would continue working with the City of Harare and other towns/cities in the development of housing to ease the national housing backlog.
The project would be managed by Zimre Property Investments and would be developed by Tencraft Construction Company.
Speaking at the same function, Harare Mayor, Muchadeyi Masunda said the city had a huge housing backlog and commended the Fidelity Life housing project.
He said while companies came up with housing projects there was also a need to address infrastructural issues to complement urban expansion.
“As developers come up with housing schemes we also need to address infrastructural issues to cater for the increasing population. We need to develop new facilities as well,” he said.
Research has shown that between 2 030 and 2 040 more people would be migrating from the rural to the urban areas.
But the infrastructure in the towns and cities had not changed in 40 years. This meant that the population was increasing pressure on existing infrastructure, resulting in poor service delivery.
For example, demand for water in Harare stood at 1 400-mega litres but the city was processing just between 620 and 640 mega litres.
This meant that due to the increasing urban population more water would be required as well as other services.
Fidelity Life managing director, Mr Simon Chapereka said his management was excited by the project, which was expected to drive the value of the company.
“We are witnessing this housing project today and we are projecting a 400 to 500 percent bottom line to full year and that means a lot for the company,” he said.
Fidelity has done well on the equities to record the biggest gain year to date, earning about 450 percent from US$2c in January to trade at the current price of US13,50c.
Meanwhile, Mr Masunda, who is also chairman of Old Mutual Zimbabwe, said Old Mutual Plc had provided US$15 million for the development of 4 500 houses in Budiriro suburb.
Mortgage business in Zimbabwe had collapsed during the hyperinflationary environment and was now being reintroduced following the liberalisation of the economy in 2009.
Online Reporter