Fidelity to seal US$21m housing loan

The Zimbabwe Stock Exchange-listed firm is negotiating with six financial institutions to fund the building and development scheduled for the first quarter of 2013.
Managing director Mr Simon Chapereka yesterday told shareholders at an Annual General Meeting that the project, Fidelity Life South View Park, would be self-financing.

“We are negotiating with six potential financial institutions,” said Mr Chapereka. “We are not                      coming to shareholders to ask for money                    through a rights issue or through a private placement.”
Fidelity bought 323 hectares of land from CFI Holdings, which was previously Crest Breeders property along Amalinda Drive just south of Boka Tobacco Auction Floors.

Mr Chapereka said the group had acquired an additional 8 hectares along Beatrice Road for commercial purposes. This project would be developed at a later stage.
He said the Fidelity Life Park in Manresa was 90 percent complete with 160 stands out of the 370 stands now sold.
Fidelity’s top line for the first five months of the year rose to US$2,8 million from US$2,6 million recorded last year.

Bottom line for the period was up 88 percent to US$6,7 million from 3,5 million in last year’s comparable period.
During the five months, premium income was US$5,4 million up from US$4,2 million recorded last year.

Fee income also went up 18 percent to U$1,2 million from US$1,02 million. Total income for the period increased by 27 percent to US$6,6 million from US$5,2 million recorded last year.

Mr Chapereka said growth in Vanguard in Malawi increased 153 percent, but could reflect less in terms of premium income due to a 50 percent devaluation of the Malawi kwacha. The funeral business grew 94 percent.

Total expenses for the group stood at US3,8 million from last year’s US$2,8 million, showing a growth of 46 percent.
During the period under review, Fidelity embarked on expanding its branch network and the group is yet to benefit from this investment.
Also contributing to expenses were employment costs, which went up due to National Employment Council adjustments dating back to January this year.