Zim pensions funds bid for The Grove Mall of Namibia

ZIMBABWEAN pension funds are manoeuvring to take over a US$113 million (N$1.8 billion) property, The Grove Mall of Namibia, in Windhoek, in a deal which involves two local financial advisory and asset management companies.
The transaction would bring new activity in the market which has of late been shaken by economic upheavals and currency volatility.
Already at an advanced stage, the deal is being coordinated by two local financial companies, Stratus Capital Partners, an asset management firm, and Bard Santner Markets Inc, a new Harare-based financial advisory firm.

Market sources say pension funds are keen to acquire the property from South African property giant, Atterbury Property Holdings, owned by the JSE-listed Atterbury Group.

Atterbury is a real estate development, investment and management company. It develops prime mixed-use, commercial, retail and industrial properties. From its South African roots, it has spread its wings across Africa and into Europe.

It has developed many properties in South Africa, sub-Saharan Africa and Europe worth billions.
Bard chief executive officer Senziwani Sikhosana refused to comment on the deal.
“Let’s wait until the processes are complete. We can’t comment at the moment,” he said.

However, a source said the deal is going on well and is likely to be closed soon.
“Negations are going well and the deal will be closed soon. Atterbury, a South African property development company, is disposing equity in The Grove Mall of Namibia for N$1.8 billion (US$113 million). Zimbabwean pension funds are interested in the property which is being sold through Bard and Stratus in Harare,” a source said.

Bard is the lead financial adviser. Stratus Capital Partners, led by Chikuni Shenjere-Mutiswa, brokered the deal. Shenjere-Mutiswa is an experienced chartered financial analyst, Sikhosana, who has over two decades experience in banking, is a seasoned investment and capital markets dealer.
At Bard, Sikhosana works with a local business consortium which includes Tatenda Hungwe, Alfred Mthimkhulu and international finance expert Vinod Bussawah from Mauritius.

Market sources say Bard and Stratus are negotiating with local pension funds to invest in the massive regional property which has an annual turnover of N$890 (US$56 million).
Until relatively recently, pensions funds invested primarily in stocks and bonds, often using a liability-matching strategy. Now they increasingly invest in a variety of asset classes, including private equity, real estate, infrastructure, and securities to hedge inflation.

The current Pension and Provident Funds Act in Zimbabwe is being amended through the Pensions and Provident Funds Bill to modernise and strengthen the regulation and supervision of the pensions industry, while giving them flexibility to invest in other markets.
There has been very little legislation on the subject of pensions law with the current law statute having been promulgated in 1976.

However, the adoption of the 20213 constitution and the Justice Smith Commission of Inquiry of 2017 has brought with it great optimism and potential enormous impact on the pensions sector.
Provision of pensions is of fundamental economic and social importance, ensuring the successful delivery of adequate retirement income. The promise to pay a benefit during retirement to today’s workers, covers a period that can span many decades.
The capacity to meet these promises is one of the most important issues in the design of retirement systems.

All too often, policymakers mistakenly conclude that a pension system is financially healthy because it is generating short term surpluses. The effective supervision of pensions, and of the institutions that provide pension products and services, is required to ensure the protection of pensioners.

Built Howard & Chamberlain Architects through investment from Atterbury Property, Attacq Ltd, The Frontier Property Trust and Demushuwa Property Developer (Pty) Ltd, The Grove, located in the Hilltop mixed-use estate in Kleine Kuppe in the southern Windhoek suburbs, corner Chasie Street and Frankie Fredericks Drive, is largest shopping centre ever to be developed in Namibia, measuring 52 000m2, at a cost of N$1 billion (US$62.5 million).

A sources said the deal provides a good opportunity for pension funds in Zimbabwe to invest in the region and make inroads into the regional market.
Kleine Kuppe and its environs is currently the fastest growth node in Windhoek. Conveniently, the mall has easy access from almost all suburbs in Namibia’s capital as well as to both international airports.

The primary focus of the mall is on retail and entertainment. It has all the big retain shops found in South Africa and elsewhere in the region. A number of contemporary restaurants with outside seating under the African sky, provide spectacular views of Windhoek.
Namibia is an attractive market for Zimbabwean companies due to its stability.

The economy is projected to grow by 2.6% in 2021 and 3.3% in 2022, on the back of a steady recovery in financial services, tourism, retail and wholesale trade, and the mining industries — combined with an improvement in the regional and global economic environment. biznews.na