Judith Phiri, Business Reporter
LISTED hospitality group, African Sun Limited has said tourism player, Mewame Family Trust has offered to purchase Great Zimbabwe Hotel and associated Hotel Business, located in Masvingo, for a gross consideration of US$4.2 million.
In March last year, the board of African Sun, which is listed on the Victoria Falls Stock Exchange (VFEX), resolved to dispose of certain assets of the company, one of the assets identified was the Great Zimbabwe Hotel (GZH).
In an announcement to shareholders, the hospitality group said following the notice to shareholders dated 10 October 2024, the Mewame Family Trust approached them and opened negotiations for the outright purchase of the Business and Assets relating to the Great Zimbabwe Hotel culminating in an Agreement of Sale being executed on the 28th of January 2025.
“Mewame Family Trust offered to purchase the Great Zimbabwe Hotel, being a certain piece of land known as Mundells Plot A, measuring 20.4272 hectares situated in the District of Victoria, held under title deed 1747/2010, for a gross consideration of US$3.2 million and also offered to purchase the Hotel Business and associated Hotel Assets housed at the Great Zimbabwe Hotel for a consideration of US$1 million as a going concern,” read part of the notice.
“The material conditions precedent relate to payment of the full consideration within the agreed periods, completion of a due diligence exercise and in the event required by the purchaser, Exchange Control approval and approval from the Competition and Tariff Commission by 01 April 2025.”
African Sun said the purchaser shall pay the purchase price in full into their nominated account on or before the agreed payment dates, while the effective date of the transactions contemplated above is 01 April 2025.
The hospitality group said The Mewame Family Trust, a player in Zimbabwe’s tourism and property development sectors, headquartered in Harare, seeks to bolster its tourism portfolio.
“To achieve this goal, the Trust has set its sights on acquiring the Great Zimbabwe Hotel, with plans to enhance and expand its existing tourism assets. Notably, there are no existing relationships or affiliations between African Sun and the trustees or promoters of the Mewame Family Trust.”
African Sun said it has enjoyed a considerable turnaround in fortunes over the past four years post the Covid-19 pandemic, with several changes at executive level over the same period.
It said to expedite the refurbishment of several of the portfolio’s primary hotels, the board deemed it necessary to complement capital raising initiatives by selling selected assets, including The Great Zimbabwe Hotel, which has been a marginal contributor to the profitability of the group over the review period.
African Sun Limited is a leading hotel asset management firm and at present manages ten hotels strategically located throughout Zimbabwe, while a real estate arm complements its core business.
Of the ten, the group owns seven properties namely Holiday Inn Mutare, Monomotapa Hotel, Troutbeck Resort, Elephant Hills Resort and Conference Centre, Hwange Safari Lodge, Great Zimbabwe Hotel and Caribbea Bay Resort) and leases three properties namely Holiday Inn Harare, Holiday Inn Bulawayo and The Victoria Falls Hotel.
