FBC awaits housing project nod

HARARE - FBC Building Society (FBCBS) is set to start on Phase Five of its Masotsha Ndlovu cluster home project in May, with the group waiting on regulatory approvals to begin operations, a company executive has said.

The building society’s Executive Director Finance and Administration Agnes Kanhukamwe told the businessdaily on the side-lines of a hand-over ceremony for the development’s phase four units that the group’s other 72 units constructed in prior phases had all been sold out.

“We are presently finalising relevant approvals from all the respective authorities. The units will be the same as the other phases and we expect to start initial work in May,” she said.

Kanhukamwe said the group expected the project to be completed with units on the market by beginning of 2018, adding that the development was going to be adjacent Phase Two.

“The duration is 18 months at most, we think at the end of 18 months the project will be completed with the units ready for occupation,” she said.

FBCBS’ Masotsha Ndlovu cluster home project is a medium density cluster home scheme, located in Waterfalls approximately 12 kilometres from the Central Business District.

The units which are now going for $97 000 attract a 25 percent initial deposit for the 10-year mortgage facility, while two percent will go towards mortgage application fees.

FBCBS — which has spent over $35 million in total on constructing residential development projects and mortgage financing as part of efforts to alleviate housing challenges in the country — has constructed over 800 units in the past five past years.

The company also recently acquired more than 2 000 hectares of prime land in Harare earmarked for the construction of residential properties.

Last year, FBCBS slashed prices for its Masotsha Ndlovu housing units from $118 00 to $92 000 due to worsening economic conditions in the country.

Zimbabwe has been experiencing an acute liquidity crunch since 2009 when the country adopted the multiple currency system and absence of key economic reforms have exacerbated the situation.

While the group has not disclosed more price slashes, experts say property firms are going to be forced to keep slashing their prices to match the tight liquidity conditions.

Zimbabwe’s property sector is currently depressed resulting in property prices being reduced by between 20 to 30 percent of the pre-2012 economic boom era.

Meanwhile, FBC Holdings chief executive John Mushayavanhu also said the group was working on its Acturus Road project, a slightly bigger scheme than the Masotsha Ndlovu development.

“We also have the Acturus Road project, tailored for the high end market. Work is in progress and the property will even have a communal swimming pool,” he said.

During the year to December 31 2015, FBCH profit for the year surged 269 percent to $18,1 million from $4,9 million on the back of growth in net interest income and insurance premium, with FBCBS contributing 28 percent to group profit on the back of an eight percent Non-Performance Loan ratio.

Comments (1)


jack - 26 April 2016

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