The Makasa Sun transaction partially consummated in 2015 between properties concern Dawn Properties and Barclays Bank of Zimbabwe has failed to materialise amid indications of non-committal to the initial agreement among the parties involved.
In 2015, Barclays Bank announced that it had sold its 50% stake in Makasa Sun Hotel in Victoria Falls to Dawn Properties which was to pay $7.5 million within 30 days of concluding on the conditions precedent from which selling costs would be paid.
The Makasa Sun Hotel property, trading under African Sun’s Kingdom Hotel was valued at $14.6 million in June 30, 2015. Sources close to the transaction believe that Barclays is now considering an offshore investor following its takeover by new shareholders First Merchant Bank Capital Holdings of Malawi.
According to people familiar with the matter, in 2016 the Bank was the one putting pressure on the buyer but later in 2017 they started dragging feet amid indications of takeover n
“The momentum has slowed as there is now limited commitment from the seller (Barclays) following the entrance of new shareholders,” said the source, adding that there were possibilities that the Bank is now engaging offshore investors for the tourism property.
In an emailed response, Barclays Head Corporate Affairs and Customer Services Emily Nemapare told FinX that she could not give more details to ensure confidentiality.
Currently the majority of the Dawn Properties’ portfolio is in hotel properties which are operated by African Sun Limited. The company also owns over 300 hectares of residential land earmarked for development.
The company has various initiatives meant to improve its performance which include unlocking value from the land bank with the first project being Elizabeth Winsor Gardens and the restructuring of the consultancy business.
Meanwhile, Nemapare also highlighted that the Barclays brand will continue to be in use until October 2018.
“Thereafter our business will be co-branded until October 2020 after which the exercise will be completed and use the FMB Capital Holdings brand.
“This is in line with our initial outline on the brand transition journey,” she said. — FinX.