Old Mutual breaks ground on Prospect One

Old Mutual Zimbabwe says lack of liquidity within the country’s macroeconomic environment has an adverse impact on the real estate sector, hence, it is one of the challenges that need to be addressed, especially if one is undertaking large projects.

Zimbabwe’s limited access to long term capital makes it difficult for people to get mortgages. This is on top of high interest rates and strict lending requirements that make it even harder for buyers to secure financing.

The financial services group is financing a US$12 million medium-density suburb, Prospect One, housing development within the Prospect Industrial Park area in Harare, which is being constructed by Troika Design Workshop through a turnkey contract.

Group chief executive officer Samuel Matsekete said in an interview after the launch of the project on Monday that a lack of liquidity may slow things down from time to time but certainly does not stop the thrust and direction to continue to work on the project.

“We won’t have to work on all of the factors that we need to address to be able to deliver the project.

“But the interesting thing with the project is that Old Mutual is also positioning itself to attract more flows from clients, both current clients and prospective clients,” he said.

Matsekete said the group is undertaking the project in order to offer its investing clients value.

“What you will see here is going to be a flagship of progress and technological innovation,” he added.

The Prospect One development features 136 standalone four-bedroom houses and 144 high-rise residential apartments, including 72 one-bedroom units, 36 two-bedroom units, and 36 bedsitter apartments.

Situated on 8,3 hectares of land on Ceres Avenue, this project, Matsekete said, aligns with Old Mutual’s objectives to champion increased investment in affordable and sustainable housing.

The project is expected to be completed within 18 months, with the first phase costing approximately US$4 million.

According to Matsekete, the development will be executed in phases, beginning with land servicing and the construction of standalone housing units, followed by the final phase of high-rise residential apartment construction.

“Doing great things every day is at the heart of Old Mutual and the Prospect One housing development is a testament to this promise, as it not only contributes to addressing the country’s housing shortage but also diversifies Old Mutual’s investment portfolio to create lasting value for its clients and communities.

“The Prospect One housing development is a reflection of our continued commitment to empower our society while championing increased investment in affordable housing,” said Matsekete.

“Through this project, we are proud to deliver on our promise to ‘do great things every day’ and make a positive impact,” he added.

Matsekete also indicated that the Prospect One development project is aligned to a priority identified in the National Development Strategy 1 (NDS1) around the provision of housing and Sustainable

Development Goal 11 of the United Nations, which also talks about sustainable cities and communities.

He said the housing project will feature central infrastructure, which includes alternative energy or supplementary water supply systems to support the thriving communities.

Matsekete said the Group has a long history in developing commercial and retail properties, with some experience in residential projects as well.

“At the same time, we have also been involved with housing projects like the Budiriro housing projects of 3 000 units.

“Therefore, this is a continuing journey on the part of Old Mutual, but there are things that we are changing in terms of modernisation as technologies evolve and solutions that we are also adapting,” he said.-businessweekly