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Real estate industry

Zimbabwe's Property Investment Landscape Sees Strong Growth with Launch of Seatrite Five Trust

Strategic Insights

— 2 min read

Zimbabwe's property investment sector is experiencing a boost with the launch of the Seatrite Five Trust, a real estate investment trust (REIT) managed by Nhoro Asset Management. This development marks the debut of the Radisson Hotels brand in Zimbabwe, with the trust planning to build a 148-apartment hotel in Borrowdale, Harare. The trust aims to raise funds through the sale of units, offering investors exposure to and ownership of an apartment hotel operated by one of the world's largest hotel groups. The project is expected to attract significant returns for investors, with annual income yields projected to grow steadily from 7.5 percent in year one to 14 percent by year 10.

Key Takeaways:

  • The Seatrite Five Trust is a real estate investment trust (REIT) managed by Nhoro Asset Management, aiming to raise funds for the development of a 148-apartment hotel in Borrowdale, Harare.
  • The hotel will be operated under the Radisson Hotels brand, marking the group's first entry into Zimbabwe.
  • The trust is offering 27,144 units, with the proceeds from their sale earmarked for the construction of the Radisson Apartment Hotel Harare (Block 5).
  • Construction is scheduled for completion by May 2027, with operations set to commence immediately thereafter.
  • The unit cost of Seatrite Five Trust on launch will be US$500 per unit, with the project expected to be revalued quarterly to estimated market value.
  • The property will sit on a 7,794m² stand in Borrowdale, with a total built-up area of 9,860m².
  • The apartment mix comprises 136 studio units, 11 one-bedroom units, and a single three-bedroom apartment.
  • The facility is designed with sustainability in mind, aiming to be self-sufficient in water and electricity.
  • The trust is projecting attractive returns for investors, with annual income yields expected to grow steadily from 7.5 percent in year one to 14 percent by year 10.
  • The trust guarantees a first-year yield through a trust reserve fund at 8 percent.
  • The REIT structure brings tax benefits, with all rental income expected to be tax-free once listed.
  • More than half of the units have been taken up, with the trust aiming to raise a further US$6 million from the market.

Statistics:

  • Construction is scheduled for completion by May 2027.
  • The project is expected to be revalued quarterly to estimated market value.
  • The property will sit on a 7,794m² stand in Borrowdale.
  • The total built-up area of the property will be 9,860m².
  • The apartment mix comprises 136 studio units, 11 one-bedroom units, and a single three-bedroom apartment.
  • The trust is projecting annual income yields to grow steadily from 7.5 percent in year one to 14 percent by year 10.
  • The trust guarantees a first-year yield through a trust reserve fund at 8 percent.
  • The REIT structure brings tax benefits, with all rental income expected to be tax-free once listed.

Sources:

  • "Seatrite Five Trust" press release, no date available
  • "Radisson Hotels" press release, no date available
  • "Nhoro Asset Management" press release, no date available
  • "Victoria Falls Exchange" press release, no date available

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