CBZ, council in $11 million mall deal

HARARE City Council and CBZ Holdings have agreed on a deal that will result in the financial services group developing an $11 million state-of-the-art mall in Graniteside to cater for small to medium enterprises and vendors on a Build Operate, Transfer basis.

CBZ will also build bus terminus infrastructure at the corner of Seke Road/Dieppe Road at a total cost of $11 388 300.

According to the arrangement, CBZ will factor in 30 percent mark-up, that is $3 416 490, to the total cost of the project.

The two partners expect monthly revenue inflows of $182 804 basing on current tariff charges and anchor tenants for supermarkets have been already identified as Pick n Pay or OK Zimbabwe who have both expressed interest.

During the 25-year life of the agreement, CBZ will retain 80 percent of the revenue collected to service the loan while 20 percent will be channelled towards the city’s revenue.

According to documents of the deal, the works will comprise 300 wholesale fruit and vegetable stalls, 320 farmers’ market stalls, 465 flea market stalls, 100 overnight cloak rooms, 165 electrical and hardware stalls and 370 parking bays.

It will also include 280 clothing bale stalls, 165 electrical and hardware shops and a service centre.

The bus terminus will accommodate 120 long distance buses and 150 commuter omnibuses.

“The proposal arrangement will see CBZ financing and developing the entire market including the bus termini for Harare City Council (HCC). CBZ will also secure one hectare of the land in order to build a service centre which will comprise a supermarket, line shops, banks/ATMs and a food court,” reads part of the document.

“The area for the construction of the service centre will be sold to CBZ and the value of the land will go to reducing HCC’s development loan. Provision for a service centre is critical in that the SMEs centre will then be a complete one-stop shop and people will therefore not be required to go into the CBD or anywhere else for any other services.”

The development will enable HCC to manage vendors as well as decongest Mbare Musika, Mbare bus terminus and Harare’s central business district.

Acting Town Clerk Eng Hosiah Chisango has already tabled the proposal to the Councillor Herbert Gomba-led Environment Management Committee which approved the plans.

The two partners are now expected to sign a Memorandum of Agreement before development commences.