CBZ’s US$500mln Northgate project ready in 18 months

FINANCIAL services group CBZ Holdings (CBZ)’s asset management division Datvest, expects to complete the Northgate housing project located 17 kilometres north of Harare central business district (CBD) in the next 18 months.

The housing project, which spans over 1 000 hectares of land, commenced on the 4th of June this year and is scheduled to be complete by December 5, 2025.
This comes as prospects for the residential segment remain high, underpinned by the firm demand for housing.
CBZ group chief executive, Lawrence Nyazema told the media during the Northgate tour held recently that the project will be done through a phased approach and will have some sustainability features.

Lawrence Nyazema

“Over the next 18 months, we are looking at manufacturing and availing over 8 000 stands of different sizes, starting at 400 square metres to 1 200 square metres,” he said.
“As per the phase itself, it is US$150 million. When I look at the entire project, I think we are almost looking at half a billion dollars. So that is the size of investment that will go into it, in terms of the value of the stands and the value of the properties.”
The diaspora community has the option to purchase stands with a flexible payment plan spanning five years, featuring a competitive interest rate of eight percent.
As for the funding modalities of the housing project, Nyazema told The Financial Gazette that it will mix a combination of its own resources and payments from customers.
“By starting to do the infrastructure, that is internal funding, but as the buyers start å paying for their stands, whether they are paying for the stands over five years or they are paying cash, that is some of the funding that will assist in carrying out the rest of the works,” he said.
The project features a collaborative effort among several key players, including Seef, who will handle stand sales; Masimba Construction, which is providing expert engineering services; and Datvest, who is overseeing asset management.
Banks are now one of the biggest drivers of residential real estate growth in the country, but demand for their products is low because of the high fees or interest associated with mortgages.
Affordable housing will remain a top priority for the residential market due to growing public and private sector support.
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