HomeBusiness DigestLonZim Eyeing a Harare Five Star Hotel

LonZim Eyeing a Harare Five Star Hotel

LONZIM, the investment company owned by Lonrho, is eyeing an unnamed five star hotel in the capital.

This would add to the investment company’s portfolio which already includes Leopard Rock Hotel in Mutare and another one in Beira.
LonZim announced yesterday that they were looking at the possibility of an “acquisition and development of a new five star hotel property located in the prime area of Harare to complement the current LonZim hotel portfolio”.
There are two five-star hotels in Harare; Rainbow Towers and Meikles.
Apart from the proposed acquisition of the hotel, the company also intends to purchase a large industrial warehousing complex in Harare.
LonZim raised US$46,5 million at its initial public offer two years ago with the specific aim of acquisitions and investments into Zimbabwe.
To date, the company has completed seven transactions and built a portfolio of businesses in Zimbabwe that are well positioned to benefit from economic recovery.
LonZim was created to establish a strong portfolio of businesses in Zimbabwe and the Beira corridor that geographically delivered a London Stock Exchange-quoted conglomerate soley focused on Zimbabwe.
The company has so far committed US$36,61 million (80% of the amount raised during the IPO) into various sectors with the largest chunk, 38% going towards hotels.
Other sectors such as information technology/telecommunications and printing also had allocations of 24% while a further 16% has been allocated to aviation.
LonZim has invested in an option to acquire 51% of FMNA (Africa) a company that provides software solutions for mobile telephone handsets that facilitates two way instant messaging and email technology.  This permits even the most basic mobile handset to be able to send and receive emails, secure messaging (banking) and other information services.
“With a successful trial with Econet Lesotho and a subsequent full rollout, plans are under development following the stablisation of the US dollar economy for a significant trial with Econet Zimbabwe.
“A series of other African countries are also establishing trials for the FMNA technology,” said LonZim.
LonZim purchased Leopard Rock Hotel for US$8,5 million and it is undergoing a US$1,7 million refurbishment expected to be completed in March 2010.
The company also owns 60% of the Zimbabwe Stock Exchangelisted Celsys which has obtained the distribution rights for Diebold automated teller machines and is installing these state of the art ATM’s at Kingdom Bank branches along with 2 000 Point of Sale machines across the country.
Other operations where LonZim has interests include Fly540 a commercial airline which should have started flying last month before it faced hurdles.
However, this does not mean that they have abandoned this venture as they have continued to allocate resources to it.

Leonard Makombe

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