Listed hospitality group, African Solar Restricted, has bought Nice Zimbabwe Resort in Masvingo and Beitbridge Categorical Resort for a mixed US$6,9 million to TD Motels and Leisure (Personal) restricted, an upcoming native hospitality concern.
African Solar, which is listed on the Victoria Falls Inventory Trade (VFEX), stated the transactions have been occasioned by the necessity to complement capital elevating by promoting chosen property thought-about to not be core to the group’s future.
In an announcement to shareholders, the hospitality group stated that over the previous three years, after the Covid-19 pandemic, it has loved a substantial turnaround in fortunes.
Nonetheless, because of deteriorating buying and selling situations, the Beitbridge Categorical Resort (BEH) was mothballed in early 2016 whereas the Nice Zimbabwe Resort (GZH) has been a marginal contributor to the profitability of the group over the evaluation interval.
“This announcement is neither a prospectus nor an invite to the general public to subscribe for shares in African Solar Restricted, however is issued in compliance with the necessities of the VFEX, to present data to the general public concerning the disposal of the GZH Resort and related lodge enterprise, positioned in Masvingo, for a gross consideration of US$4,4 million and the disposal of the BEH, positioned in Beitbridge, for a gross consideration of $2,5 million — all to TD Motels & Leisure (Personal) Restricted,” stated the group within the newest buying and selling replace.
The choice to eliminate GZH was reached in March this yr whereas the Beitbridge Categorical Resort (BEH) has been held as an asset accessible on the market since September 2021.
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Negotiations have been entered into in respect of the Beitbridge Resort and an settlement of Sale was executed on July 18 this yr.
Subsequently, negotiations for the sale of the GZH have been held with the identical potential purchaser and an settlement of sale was executed final month.
In 2023, African Solar posted an working revenue of US$3,74 million.
Nonetheless, the group recorded a marginal revenue after tax from persevering with operations of US$0,52 million.
African Solar is a famend lodge asset administration agency that trades on the VFEX and presently, the hospitality concern manages 10 accommodations strategically positioned all through Zimbabwe.
A Actual Property arm enhances its core enterprise.
Of the ten, the group owns seven properties that are: Vacation Inn Mutare, Monomotapa Resort, Troutbeck Resort, Elephant Hills Resort and Convention Centre, Hwange Safari Lodge, GZH and Caribbea Bay Resort and leases three properties — Vacation Inn Harare, Vacation Inn Bulawayo and The Victoria Falls Resort.
