Online Reporter
Business Reporter
A PROTRACTED ownership dispute between CFI Holdings Limited and Fidelity Life Assurance of Zimbabwe (FLAZ) over Langford Estate has become a significant risk to millions of policyholder funds, effectively stalling FLAZ’s planned investments.
The insurance company is unable to access the land for housing development due to the long-standing legal battle, with the matter presently before the High Court.
FLAZ says the project would help alleviate Zimbabwe’s acute housing shortage.
However, key shareholders of CFI, which owned the land, primarily Willoughby’s Investments, argue that the original transaction was “illegal” and “fraudulent,” claiming it was never approved via a special resolution.
Proponents of the reversal claim the land was undervalued at US$2.70 per square meter, compared to market rates of approximately US$6 per square meter at the time.
Since 2017/2018, CFI has sought to nullify the deal to recover the property, resulting in legal proceedings that have persisted for over six years.
At the heart of the impasse is an 834-hectare plot in Harare South. FLAZ earmarked the site for large-scale residential development after assuming CFI’s liabilities more than a decade ago under a US$18 million debt-swap deal.
