HomeBusiness DigestPROPERTY - Sunway City develops prestigious parks

PROPERTY – Sunway City develops prestigious parks

SUNWAY City Harare (Pvt) Ltd, a subsidiary company of Industrial Development Corporation of Zimbabwe Ltd, is developing Sunway City Residential Park, Sunway City Industrial Park and Export Processing Zone (EPZ) Park.

The industrial park is strategically located 6,5 km from the Harare International Airport and it is also the junction of the regional road and rail network that connect to the Port of Beira in Mozambique. On the other hand, Sunway City Residential Park is situated 18 km along Mutare road opposite Zimre Park.

Selling has now commenced for Sunway City Residential Park Phase 2. A total of 500 residential stands with a minimum size of 2 000 square metres are selling fast to both the local and diaspora market at a minimum discounted price of $60 million.

Sunway marketing manager M Chavhunduka urged all potential investors to invest in the industrial park including those in the diaspora. Prices have been reduced from a minimum of $80 million plus interest to a minimum of $60 million without interest if paid within three months of signing of the agreement of sale. This is in response to the new monetary policy implemented by Reserve Bank of Zimbabwe governor Gideon Gono.

Sunway City has embarked on development of the Export Processing Zone Park currently estimated at a total cost of $800 billion. The cluster-based EPZ park development approach adopted by the company will provide the basis for more cohesive and integrated framework for industrial development as well as analysing industrial performance. The EPZ park will be integrated with high-tech park, light industries, warehouses, office park, inland port and lorry park. Industrial shell units are being constructed for leasing as a long-term strategy. Some factory shells have been recently constructed and occupation is targeted for next month starting with a company for cotton bleaching and manufacturing of sanitary pads for both local and export markets.

Servicing of industrial park Phase 1 is now complete with stand sizes ranging from 4 500 to 30 000 square metres.

Incentives are being offered for the first few purchasers, which include a cash purchase if payment is done within six months at zero interest rate and a reduced minimum deposit of 10% if payment is above six months at commercial mortgage interest rates. Chemplex has since completed construction of an industrial complex for an agricultural chemical plant to be opened next month.

Industrialists are encouraged to locate to the industrial park and benefits to be enjoyed will include backward linkages, technology transfer and utilisation of modern infrastructure of the EPZ.

Sunway City has embarked on infrastructural development project for water augmentation/supply, roads networking and electrification of the project in order to complement these efforts. There are two 5 000 square metre tanks of which one is complete and the other is 80% complete, and a 500 cubic metre gravity tank to augment water pressure.

Infrastructural development is the major stumbling block for most unsuccessful developments, and the company has countered this by giving priority to infrastructural development.

The export-led manufacturing sector growth strategy will continue to be the engine for economic growth and will help foreign currency shortages to stimulate economic development.

Many incentives are being offered by EPZA for companies with EPZ status that include the following:

*100% corporate tax holiday for the first five years, thereafter a flat rate of 15%

*Exemption from capital gains tax, withholding taxes on fees and remittances

* Duty-free importation of all raw materials and intermediate goods required in the production and in the construction of EPZ facility.

All in all the development will provide quantifiable and none quantifiable benefits which include employment creation opportunities, personal tax, corporate tax, value added tax, linkages of industries and technology transfer. Targeted sectors include black granite cutting, polishing and clothing and garment, jewellery, wood and leather industries.

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