BULAWAYO – The Unified Councils Pension Fund is looking at raising US$2.9 million through private placement for the construction of a three-star hotel in Victoria Falls, which will be managed by Cresta Hotels.
The UCPF Victoria Falls Hotel is set to be a three-star facility located on a picturesque 1.4-hectare site at stand number 1354 in Victoria Falls, which is next to the site of the ZESA Pension Fund resort, which will also house another Cresta Hotel facility. The sites are near Mbank Manor Capital raising promoter Switzview Asset Management’s Batanai Matsika said Cresta would manage both sites. ZESA PF will raise its fund through a development REIT.
Cresta will manage the hotel, which will operate under a long-term lease agreement. The construction of the hotel is expected to take 18 months, with plans to create a facility that not only enhances the local tourism landscape but also contributes to the economic growth of the region.
With a total development cost estimated at US$6.15 million, the hotel will feature 57 beds, including 52 standard units, three family units, and two luxurious suite units. The project aims to provide modern and efficient hospitality services tailored to meet the needs of both local and international travellers.
The private placement offers investors an equity stake of 49% in the project, with UCPF contributing US$1 million in land and US$2.15 million in cash. This collaborative investment model aims to attract a diverse range of investors looking to capitalize on the growing demand for quality accommodation in Victoria Falls, a UNESCO World Heritage site known for its breathtaking natural beauty and adventure tourism.
“This project represents a significant opportunity for investors to engage in a high-potential hospitality asset in a prime location,” said Matsika. “With the prescribed asset status, we believe this investment will not only yield attractive returns but also contribute positively to the local community and economy.”
The projected rate of return is 18.58%, and the payback period is 12.4 years.
