News / National
BCC reverses CBZ, FBC housing stands deal
07 Jan 2022 at 05:56hrs | Views
THE Bulawayo City Council (BCC) has reversed its decision to sell some residential stands to two financial institutions after the parties failed to agree on the purchase price.
According to latest council minutes, BCC in April last year resolved to sell 453 high density residential stands in Luveve North and 670 medium density stands in Mahatshula East at US$5 per square metre to First Banking Corporation (FBC) Building Society and CBZ Bank respectively.
A management committee tasked the BCC negotiating team to engage the banks and negotiate on buying the stands at US$5/m2.
BCC said subsequent meetings were held with the banks, which saw CBZ offering to purchase the stands at US$3,70 and FBC Building Society offered to buy the stands at US$3,50/m2.
"Both offers were below the US$5/m2 that council wanted. The matter was then discussed by the management committee on 3 December 2021 where management resolved to adopt the recommendations of the negotiating committee.
"Thereafter it was resolved to recommend that council reviews and rescinds its decision of 7th April 2021 that resolved to sell 453 residential stands in Luveve North to FBC Bank and 670 residential stands in Mahatshula to CBZ Bank at a price of US$5/m2 since the banks had indicated that they were not in a position to match the council offer," said the local authority.
BCC said it also resolved that the stands in question be disposed using alternative mechanism, which would make it possible to achieve the local authority's objective to raise funds for stalled residential stands project.
Asked for comment, a properties market expert who would not be named citing professional reasons, said: "In high density areas, an average stand size, which is developed (roads/sewer system) averages US$10/m2 to US$15/m2.
"Most of the residential stands in medium density areas like Mahatshula usually start from 600m2 in size and they are going for US$15 000, which is about US$25/m2," said the official.
Meanwhile, BCC has announced the intent to avail 2 400 residential stands in a development expected to ease the housing backlog, which was presently pegged at just over 125 000.
The local authority has said it will avail the housing stands to three local contractors — Heavenview Properties, Veluntina Investments and Cabinlock Construction.
The three contractors will be expected to develop the stands before selling them to prospective homeowners in the city.
According to latest council minutes, BCC in April last year resolved to sell 453 high density residential stands in Luveve North and 670 medium density stands in Mahatshula East at US$5 per square metre to First Banking Corporation (FBC) Building Society and CBZ Bank respectively.
A management committee tasked the BCC negotiating team to engage the banks and negotiate on buying the stands at US$5/m2.
BCC said subsequent meetings were held with the banks, which saw CBZ offering to purchase the stands at US$3,70 and FBC Building Society offered to buy the stands at US$3,50/m2.
"Both offers were below the US$5/m2 that council wanted. The matter was then discussed by the management committee on 3 December 2021 where management resolved to adopt the recommendations of the negotiating committee.
"Thereafter it was resolved to recommend that council reviews and rescinds its decision of 7th April 2021 that resolved to sell 453 residential stands in Luveve North to FBC Bank and 670 residential stands in Mahatshula to CBZ Bank at a price of US$5/m2 since the banks had indicated that they were not in a position to match the council offer," said the local authority.
BCC said it also resolved that the stands in question be disposed using alternative mechanism, which would make it possible to achieve the local authority's objective to raise funds for stalled residential stands project.
Asked for comment, a properties market expert who would not be named citing professional reasons, said: "In high density areas, an average stand size, which is developed (roads/sewer system) averages US$10/m2 to US$15/m2.
"Most of the residential stands in medium density areas like Mahatshula usually start from 600m2 in size and they are going for US$15 000, which is about US$25/m2," said the official.
Meanwhile, BCC has announced the intent to avail 2 400 residential stands in a development expected to ease the housing backlog, which was presently pegged at just over 125 000.
The local authority has said it will avail the housing stands to three local contractors — Heavenview Properties, Veluntina Investments and Cabinlock Construction.
The three contractors will be expected to develop the stands before selling them to prospective homeowners in the city.
Source - The Chronicle
