Online ReporterNelson Gahadza
Senior Business Reporter
African Sun Limited says the sale of its Caribbea Bay Resort business in Kariba will unlock capital to refurbish key assets, strengthen its liquidity position and sharpen operational focus.
Caribbea Bay Resort is being sold to the Public Service Pension Fund (PSPF), a State-managed, funded retirement scheme.
The hotel group is accelerating a strategic shift towards a smaller, higher-quality portfolio.
In a circular to shareholders, African Sun said proceeds from the disposal will be channelled into refurbishing and upgrading key properties, including Elephant Hills Resort in Victoria Falls, the Holiday Inn hotels (Harare, Bulawayo, Mutare) and the Victoria Falls Hotel.
African Sun is disposing of non-core hotel assets, including the completed sale of the Great Zimbabwe Hotel for US$4,2 million and the proposed sale of Monomotapa Hotel and Caribbea Bay Resort.
African Sun Limited
The hotelier last year signed a US$18 million agreement to sell the Monomotapa Hotel to the PSPF.
“The reinvestment programme is intended to enhance guest experience and lift hospitality standards across core assets, while also supporting balance-sheet resilience,” reads part of the circular.
The company noted that the transaction will also improve its financial position by increasing liquidity to fund strategic capital improvements and underpin the recently approved share buy-back scheme.
African Sun also described the disposal as a strategic realignment, allowing management to concentrate resources on scalable, higher-return properties and improve profitability.
“Against the backdrop of prevailing market conditions and the marginal performance of the asset, the disposal enables the redeployment of capital into properties with stronger return prospects and the move aligns with ongoing portfolio optimisation and capital reallocation strategy,” the company said.
According to the circular, African Sun has accepted a US$5,65 million offer from the Public Service Pension Fund to acquire the business.
The offer covers the resort’s operations as a going concern, associated timeshare units, hotel assets and goodwill, together with the immovable hotel properties, including Kariba staff houses and related obligations.
“The sale will be concluded by way of an outright disposal, with proceeds payable in full into an escrow account designated by the company within 45 calendar days of the signature date, or such other date as provided for in the relevant sale and purchase agreements,” reads the circular.
Caribbea Bay Resort is an iconic three-star property situated on the banks of Lake Kariba.
The hotel comprises 84 rooms, including standard rooms, king leisure rooms and suites and features 11 timeshare units on the property, of which African Sun owns more than 90 per cent of the available weeks.
The resort’s amenities include the Terrace Patio Restaurant, Jacana Bar and Round Bar, conference facilities, three outdoor swimming pools and a water slide with a plunge pool.
African Sun said that while Caribbea Bay remains a recognised leisure destination, its performance relative to the group’s strategic priorities and market dynamics informed the decision to exit.
