IDBZ concludes students accommodation deals

Property Reporter
The Infrastructure Development Bank of Zimbabwe has finalised and executed financing agreements with three unnamed institutional investors for the full funding requirements of Bulawayo students accommodation in Matsheumhlope suburb. The bank said it was now in the process of engaging the Bulawayo City Council for the necessary approvals to facilitate the commencement of construction work on the project. Working with CBZ Bank as the financial advisor, IDBZ intends to raise $2 billion through bonds to be used to construct students accommodation and other on-campus facilities such as lecture rooms at state colleges and universities.

IDBZ said in May it had solicited for $107,7 million towards the cost of constructing university students and staff accommodation and housing infrastructure projects, and intended to apply part of the proceeds towards payments for goods, works, consulting, project management and other services under this programme.

IDBZ said this week it was also engaging stakeholders to develop students accommodation across the country to contribute towards the social well-being and creation of conducive learning environment for learners at state institutions.

As such, the bank said it was looking at building such kind of off campus students’ accommodation in Bindura, Lupane, Chinhoyi, Harare, Mutare, Masvingo and Marondera under phase 1 of its University Students and Staff programme.

“The model the bank is pursuing is to complement Government funded facilities on-campus with private sector financed complexes, which are availed for tertiary and university students from various institutions in each mentioned town.”

Under phase II of the USSAP, the bank will co-ordinate the development of on-campus student accommodation facilities through Build Own Operate Transfer or Build Operate Transfer arrangements, which will be underpinned by necessary Government approvals in terms of the Joint Ventures Act and structured to provide comfort to investors. When fully paid, the universities will assume ownership.

IDBZ said it was committed to leveraging its capabilities and track record in delivering housing projects to provide a sustainable solution to the acute shortage of accommodation faced by students at tertiary institutions across the country. The programme will also cater for ancillary investments in staff housing for lectures and teachers.

The bank said it was confident that the long term benefits of the investments in the students accommodation facilities would far outweigh concerns from residents in areas where the students accommodation infrastructure will be located, including perceived loss of income by the individuals who are renting out their homes to the students.

“The bank will, however, take into account the concerns and where merited, mitigate these as far as is possible without hindering the delivery of affordable accommodation to students,” IDBZ said in a statement this week.

Zimbabwe has 20 universities, 15 teachers colleges, 8 polytechnics and five industrial colleges with a total enrolment of 152 529 and a staff compliment of 18 153, all with acute shortages of accommodation and lecture rooms.