Zou buys Corner House

THE Old Mutual group has sold-off a prime office property in central Harare, otherwise known as Corner House, to the Zimbabwe Open University (Zou) for $11 million. 

Located along Samora Machel Avenue in Harare, Corner House is an eight storey low rising glassy commercial property standing 30 metres off the ground.

The property has been purchased under a lease financing deal involving Old Mutual’s property and banking arms.
After paying an initial amount of $1,99 million, settled via treasury bills, Zou will settle the balance over the next 20 years in equal lease monthly instalments. 

To cushion the financier, a clause of the agreement states that the difference will be settled at an interest rate of 6,5 percent plus the consumer price index or CABS mortgage rate applicable to clients in the category of the purchaser, whichever is higher.
Zou is a distance education university in Zimbabwe established in 1999.

Old Mutual’s property portfolio was valued at about $410 million as at December 2018 and 85 percent of the value is in commercial properties mainly, office, retail and industrial.

The financial services group is responding to shifting sector dynamics by diversifying its property portfolio into tourism and similar residential capitalising on its land bank. 

As at December 31, 2018 the group’s land bank was valued at $60,7 million. — Equity axis

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