NSSA to handover Beitbridge hotel

HARARE - National Social Security Authority (Nssa) says it will soon be handing over the completed Beitbridge Hotel to Rainbow Tourism Group (RTG).

Phillion Chereni, Nssa’s public relations manager, said the project is currently at the stage of “substantial completion” which means that all major construction work on the project has been completed and the project is able to be occupied to perform its intended use.

“In spite of this, there is still a small amount of work that remains to be completed on the project, the vast majority of which is corrective in nature,” he said.

Chereni noted that a certificate of occupation from Beitbridge Town Council was being obtained and would coincide with Nssa’s handover of the hotel to hospitality group RTG for them to begin their fit-out of the facility in preparation for the commencement of operations.

This comes as RTG was awarded a management contract to run the hotel while the authority also extended a $4,4 million loan to equip Beitbridge Hotel.

Nssa is the majority shareholder in RTG and holds over 50 percent shareholding directly and indirectly through investment vehicles in the tourism group.

The pension fund has two options to recover the $4,4 million loan from RTG, either through payments or rental fees.

This is the second time that Nssa had injected capital in the group after $10 million was extended to the hospitality company last year at 10 percent interest over a five-year period.

The three star hotel was constructed to the tune of $32 million and boasts of 135 rooms, a casino, a restaurant, three bars and a banking hall.

This development comes as the deep pocketed pensions administrator recently said that there were planning to demolish the infamous Ximex Shopping Mall in the Harare Central Business District and construct an 11-storey building.

James Matiza, Nssa’s general manager, told businessdaily that the authority’s board approved a proposed plan or structure of the new property with quantity surveyors finalising the list of materials required to kick start the project.

He said the new multi-purpose building will comprise of offices and a plaza.

While he could not disclose how much Nssa was investing in the ambitious project, the venture is reportedly within a $10 million to $15 million budget.

Comments (4)

The price of the hotel has become some kind of football..we have heard 12 millio, then 22 million now you have it as 32 million..so frankly how does this price rise on a daily basis???

gutter poet - 28 October 2013

It is shocking indeed that so much money is being spent by NSSA, when its constituents, the pensioneers are failing to survive on a measly monthly payout, if at all they get it in time. And yet these men and women spent the most productive parts of their lives working and contributing to the fund that finances NSSA. Surely after having been in existence for so long and having made huge profits from its various investment portfolios, NSSA should consider the plight of its pensioneers and review their monthly stipends to a level commensurate with the bread basket. The money is definitely there as shown in the article above ! Please allow these aged folk to eke out a more decent living given that it is their seed money that has grown and enables NSSA to splash so much on various investments. Pensioneers need to feel glad for having worked for all those years rather than regret the "wasted years" !

selectah vakuru - 29 October 2013

please be ethical and concentrate on the core business and take care of pensioners. maybe the nation needs new people to run NSSA and you guys go full time into real estate

martin matindike - 29 October 2013

Post a comment

Readers are kindly requested to refrain from using abusive, vulgar, racist, tribalistic, sexist, discriminatory and hurtful language when posting their comments on the Daily News website.
Those who transgress this civilised etiquette will be barred from contributing to our online discussions.
- Editor

Your email address will not be shared.