News / National
Homelink to roll out $50 million housing projects
16 Aug 2015 at 08:49hrs | Views
HOMELINK Private Limited plans to roll out 30 000 housing units worth US$50 million countrywide.
The company, a unit of the Reserve Bank of Zimbabwe (RBZ), is considering raising part of the funds for the projects through local and Diaspora bonds.
Though the company was established in 2005, it was put on the market in 2012 when Government made the decision to sell off the central bank's non-core assets.
However, the decision was rescinded last year. The business has since been split into four units - Proplink, Easylink, Masterlink and Investlink.
Proplink - the property division - is being touted as the flagship venture.
About 70 percent of the housing units that will be constructed will be earmarked for Zimbabweans in the Diaspora while 30 percent will be reserved for locals.
Homelink chairman Mr Moris Mpofu told The Sunday Mail Business that the projects will require about US$50 million debt capital in the next three years. "The company has set a raft of capital raising models which include local and Diaspora Bonds as well direct loan capital.
"The capital will be deployed as follows: Marlborough (US$12 million) for 132 flats, Tynwald (US$10 million) for 181 flats, Parklands (US$8 million) for 190 flats, Government land around the country (US$20 million) for the 30 000 stands.
"The total is US$50 million for 30 503 units," said Mr Mpofu. Currently, Proplink has a housing project in Tynwald, Harare, which has 180 stands, of which 80 will be sold as stands, while the remainder will be sold as build-up units.
Proplink has another project in Marlborough, Harare, where 132 flat apartments would be built. The other project is slated for Parklands, Bulawayo, with others expected in Mutare and Masvingo.
According to Mr Mpofu, the projects have been oversubscribed.
Proplink's intends to develop over 30 000 stands by 2018. Zimbabwe has a housing backlog of 1,25 million. But the projects are not only confined to residential establishments as shopping malls are also being considered as well.
However, in what could be a major intervention in the micro-finance business, Homelink, through its strategic business unit Masterlink, is offering loans for as little at 3 percent interest per month compared to interest rates of between 20 percent and 30 percent that are presently obtaining on the market.
It is believed that the issuance of productive loans promotes "real investments" that have "downstream benefits" as opposed to consumptive loans.
Masterlink's total book is currently below US$1 million.
Masterlink is expected to establish offices in all the catchment areas in the UK, USA and South Africa.
The company, a unit of the Reserve Bank of Zimbabwe (RBZ), is considering raising part of the funds for the projects through local and Diaspora bonds.
Though the company was established in 2005, it was put on the market in 2012 when Government made the decision to sell off the central bank's non-core assets.
However, the decision was rescinded last year. The business has since been split into four units - Proplink, Easylink, Masterlink and Investlink.
Proplink - the property division - is being touted as the flagship venture.
About 70 percent of the housing units that will be constructed will be earmarked for Zimbabweans in the Diaspora while 30 percent will be reserved for locals.
Homelink chairman Mr Moris Mpofu told The Sunday Mail Business that the projects will require about US$50 million debt capital in the next three years. "The company has set a raft of capital raising models which include local and Diaspora Bonds as well direct loan capital.
"The capital will be deployed as follows: Marlborough (US$12 million) for 132 flats, Tynwald (US$10 million) for 181 flats, Parklands (US$8 million) for 190 flats, Government land around the country (US$20 million) for the 30 000 stands.
Proplink has another project in Marlborough, Harare, where 132 flat apartments would be built. The other project is slated for Parklands, Bulawayo, with others expected in Mutare and Masvingo.
According to Mr Mpofu, the projects have been oversubscribed.
Proplink's intends to develop over 30 000 stands by 2018. Zimbabwe has a housing backlog of 1,25 million. But the projects are not only confined to residential establishments as shopping malls are also being considered as well.
However, in what could be a major intervention in the micro-finance business, Homelink, through its strategic business unit Masterlink, is offering loans for as little at 3 percent interest per month compared to interest rates of between 20 percent and 30 percent that are presently obtaining on the market.
It is believed that the issuance of productive loans promotes "real investments" that have "downstream benefits" as opposed to consumptive loans.
Masterlink's total book is currently below US$1 million.
Masterlink is expected to establish offices in all the catchment areas in the UK, USA and South Africa.
Source - sundaymail
