Harare city authorities last week gave CFI Holdings the nod to develop 12 400 high density residential stands at its Langford estates just outside the capital, businessdigest has established.
This comes after CFI applied to the Harare city council seeking permission to subdivide its Langford estates. situated along the Harare-Masvingo highway after the Boka tobacco auction floors
The stands, measuring 240 square metres, will be sold to the public anytime soon, according to docments seen by the Zimbabwe Independent. Although CFI did not disclose how much the group would realise from the land development project, other companies such as Fidelity are selling the same land for over US$10 000 per stand.
CFI in June entered into a land for debt swap with various financial institutions in the country to retire US$13 million in debts.
Besides residential stands, project will also have land for churches, schools and commercial activities.
With the permit, CFI is set to parcel out land to various financial institutions owed around US$13 million.
Once the land for debt deal with financial institutions is concluded, CFI Holdings Ltd’s viability should be enhanced.
In an interview a few months ago, CFI CEO Steve Kuipa told businessdigest that the transaction with banks would reorganise the group’s balance sheet and see the company bottoming out of a loss position in FY15. CFI has a September 30 year-end.
The group owes US$13 million in short-term borrowings to various unnamed financial institutions and a long term five-year loan of US$3 million is owed to PTA Bank.
Speaking to businessdigest this week, a senior CFI executive confirmed that the property development project was one of the biggest residential development in the country, adding that it would immensely complement housing plans under Zimbabwe Agenda for Sustainable Socio-Economic Transformation, government’s ambitious economic blue print.
The executive said: “We are excited about this development which we see massively changing the face and terrain of the southern areas in Harare. The government recently launched the National Housing Delivery Programme and we are delighted to partner the government in its efforts to alleviate the housing shortage in the country”.
CFI Holdings Limited is a diversified holding company engaged in the letting of properties, production and sale of fresh produce, wholesaling and retailing of consumer goods, manufacturing of stock feeds, provision of animal health requisites, operation of maize and wheat mills, poultry breeding, production, processing and selling and development and management of real estate.
The group is also involved in the retailing of general hardware, farming inputs and stock feed manufacture, poultry breeding, production, processing and sale and veterinary products.