Equity Properties secures compliance certificate

HARARE - Real estate developer Equity Properties (Private) Limited (Equity) has secured a compliance certificate for its first phase of the Golden CT Suburb (Golden) in Harare’s Mount Pleasant district.

The development not only means the property firm has met certain conditions related to ancillary infrastructure as demanded by the Harare City Council (HCC), but can also go ahead and start transferring ownership of about 80 stands to clients, while work is being done to obtain compliance for phases two to seven — with about 200 stands.

While the process to achieve compliance has not been easy as Equity has had to contend with fresh demands from the local authorities and that were not specified in the original plans, an official with the company said this could cause markedly increased costs and push back project completion.

“When we completed work on the first phase and seeking compliance, we were informed by HCC that we had to put double-layered tarred roads due to pothole problems, stand access culvert and lined storm drains to avoid erosion,” he said.

“As such, this has pushed up construction costs by an additional $2,43 per square metre from the (original) $18 per square metre. Upon engagement of the residents association, we also asked our clients to top up funds as provided for in clause 6.10 of the agreements (of sale)... but since not everyone had the money we borrowed from the market to ensure that we meet the additional demands... to achieve compliance,” they said.

Additionally, the Zimbabwe Revenue Authority has also directed Equity to remit its value added tax (VAT) on stands sold from 2009 and also levied penalties on the unpaid VAT since then.

“We decided to pay off the penalties and passed on the other costs to the stand holders as per our agreements. For instance, section 6.9 of the agreements obligates purchasers to pay a percentage of the property values (as endowment) to statutory authorities at the time of transfer... as well as VAT or sales tax should it be required by the same authority before full transfer,” he said, adding all these issues had been communicated to clients in a series of letters on December 6, 2013 and February 6 this year.

Equity said it was “important that Golden City investors” paid their dues “so that it can repay the loans and effect transfers soon”.

Comments (3)

Business editor,do not write stories that are contradicory to what is happening do not receive bribes from equity to write lies. The truth of the matter is equity are trying to force stand owners especially phase two to pay unsubstainted and unjustified sums of money on the pretext they are servicing stands as per council requirements. The unnamed equity official should verify why in their letters (December)they were simply advising stand owners that they had borowed money to service,and come February you write letters demanding payment from stand owners with only one month pay period threatening defaulters that any outstanding balance after March accrues 20per cent interest.can you mr editor explai n how you expect anyone especially with the current zimbabwe economy pay more than 10thousand in three weeks,unless if you are salary gate employee. So. Can mr business editor go and tell your unnamed equity official that your justification of this issue is not taken and hope they try to come up with reasonable ways of stealing money from stand owners who fully paid for their stands Thank you

Sim imbuing ticha - 24 March 2014

this is day light robbery. $18/ sqm is the average price for stands in the northern suburbs. These guys squandered the money during the Zim dollar era and now they do not have funds for development. How did they peg the price at $18/sqm in the first place. They should have consulted the authorities first, which am sure they did but now want to fleece the public of their hard earned money in the name of additional costs. Endowment fees are paid by the developer to council not by the stand purchaser. Do they think $18/sqm is cheap? So Mr(s) Editor, don't fool the readers and get a one sided story. How about this, you buy a standat 18/sqm in September and 3 months letter there are additional costs. Apa there is nothing happening on site. They are envying ma salary mahombe ayo and want to award themselves fat cheques.

svosve - 24 March 2014

I agree with the two comments above. These so called Land Developers want to hold on to these pieces of land and continue fleecing rightful owners of their hard earned money through corrupt tendencies. These editors are covering up massive graft in return for favors. Soon, chickens are coming home to roost. A case in hand is Antony Parehwa of Jockstar Development who is denying people access to their land and asking additional payments that are not part of contracts. He has also significantly reduced stand sizes and created additional stands for to make money. This must be exposed.

Pasinembavha - 26 March 2014

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