DIVERSIFIED insurance firm, First Mutual Holdings Limited (FMHL) says it is in talks with potential partners to invest close to US$40 million in various projects at its flagship Arundel office park in Harare.
This follows the completion of the expansion of the Arundel office park, which features a double-storey building with basement parking.
The project with a basement to provide a lettable area of 2 616,5 square metres was initially set to commence in 2020.
It was however delayed due to the COVID-19 pandemic, with construction starting in 2022.
Douglas Hoto, FMHL chief executive
In an interview with The Financial Gazette, Douglas Hoto, FMHL group chief executive officer gave indications that the scope of developing Arundel looked satisfactory.
“Arundel office park is about 24 hectares of undeveloped land, which is a lot of land in prime area,” he said.
“We are negotiating with certain partners to introduce US$37million to US$40 million projects in Arundel alone.
We will not fund it on our own. We will work with other funders, but that is in the discussion stage.”
The total pipeline cost for these initiatives is projected at about US$70 million.
This move comes as traditional blue-chip tenants are relocating from the Central Business District (CBD) due to noise pollution, traffic congestion, and inadequate parking.
First Mutual Properties (FMP), a subsidiary of FMHL, reported in July that the construction of its US$6 million Arundel Office Park block will wrap up by September, with expected rental yields of seven to eight percent.
The facility will accommodate 75 cars and offers a lettable area of 2,600 square meters. In line with sustainability efforts, FMP has installed a 65-kilowatt solar plant to reduce its carbon footprint. The project’s funding model combines internal cash flows and debt financing.
The funding model for the project was a mixture of internal operating cash flows and debt funding.
newsdesk@fingaz.co.zw