Bulawayo opens up Ascot Race Course land to investors

THE City of Bulawayo is set to open the former Ascot Race Course to competing investors after council resolved to abandon plans for exclusive negotiations with CBZ Bank over the development of the prime 59,8-hectare property.

The decision follows the completion of a Local Subject Plan (LSP) for the site, which council says provides a framework for orderly and sustainable development of one of the city's most valuable land assets.

According to a report by Town Clerk Christopher Dube, the completion of the LSP constituted a material change in circumstances from those that existed when council resolved to negotiate directly with CBZ Bank.

"The Local Subject Plan for the former Ascot Race Course site had now been completed. The Plan provided a comprehensive framework to guide future development and investment within the area and established planning parameters necessary to ensure that development of the site contributed meaningfully to the City's growth and Smart City aspirations," the report said.

Council had previously resolved to enter into negotiations with CBZ Bank for the development of the property.

However, the latest report recommended that the resolution be rescinded and that the local authority instead advertise and invite Expressions of Interest (EOIs) from suitably qualified investors and developers.

The former race course, measuring approximately 59,8 hectares, is strategically located near established suburbs including Khumalo, Woodlands and Suburbs.

The property has attracted interest from financial institutions, pension funds, property developers and other potential investors.

Council said opening the project to competition would allow it to identify the strongest development proposal while ensuring that the city derives maximum value from the public asset.

"Given that the Ascot Race Course site was prime land and one of the City's most strategic development assets, it was important that council adopted a process that ensured maximum value was derived from the land," the report said.

"Limiting consideration to a single investor might deny council the opportunity to evaluate alternative proposals that could potentially offer superior financial, technical and developmental benefits."

According to the report, an open and competitive process would also strengthen transparency, accountability and fairness in the management of public assets.

Council identified several potential benefits from the competitive process, including attracting a wider pool of investors, maximising revenue and economic returns, comparing different development proposals and reducing the risk of undervaluing the land.

The process could also boost investor confidence in the city's investment promotion and land disposal procedures while supporting sustainable urban development.

Council said development of the site had the potential to stimulate economic activity, create employment and facilitate infrastructure development in Bulawayo.

The EOI process is expected to be largely self-financing, with prospective investors required to pay a non-refundable application fee and purchase bidding documents.

"Revenue generated from these fees would offset the costs associated with advertising, administration, and evaluation of submissions, thereby making the process largely self-financing," the report said.

The local authority also expects competitive marketing of the property to maximise its value while creating opportunities for future revenue generation through investment and development.

Council subsequently resolved to rescind its previous decision authorising management to negotiate with CBZ Bank Limited and allow the relevant department to advertise and invite Expressions of Interest for the development of the former Ascot Race Course site.

The move effectively opens the door for other investors and developers to compete for a stake in what is regarded as one of Bulawayo's prime remaining development sites.