eBusiness Weekly
Enacy Mapakame
Hospitality group, African Sun Limited, says the total integration of Dawn Properties Limited into the group should be completed by year end.
The process started in 2021 with African Sun now owning the property firm.
“I am pleased to report that during the period under review, the group successfully concluded the acquisition of the remaining DPL issued shares. Consequently, the company now wholly owns DPL.
“The integration of DPL, which commenced in 2021 is progressing well and is on track to be completed by 31 December 2022,” said chairman Emmanuel Fundira in an update for the half year to June 30, 2022.
He added that the group’s strategy to rationalise its asset base by disposing non-core real estate assets to unlock much needed liquidity for targeted capital expenditure on core operations, was progressing well.
In line with this, the group has already raised US$1,7 million from the disposal of non-core assets, including proceeds from the former Brondesbury Park Hotel in Nyanga. Last year, the group indicated it expected to raise approximately US$4 million from the disposal of non-core assets in the recently acquired Dawn.
The former Beitbridge Express Hotel property and 100 percent equity stake in Dawn Property Consultancy (Private) Limited, which are the principal non-core investments yet to be disposed of, are being actively marketed.
In January 2021, the group acquired Dawn and amongst the assets acquired were assets classified as held for sale. In November 2020, Dawn had resolved to dispose of two investment properties namely Brondesbury Park Hotel and a 1,7 hectares piece of land in Harare, within a period of 12 months. During the half year period to June 30, 2021, the group decided to dispose of another piece of land in Harare Stand 4276 Glern Lorne measuring 0,5 hectares.
African Sun acquired majority shareholding of Dawn, a company previously owned by parent company Arden-Capital Limited. This now forms part of the group’s Real Estate segment with vast investment in commercial and residential properties as well as a vast land bank for development across Zimbabwe including seven hotel properties leased to a fellow subsidiary, African Sun Zimbabwe (Pvt) Ltd.
The acquisition was achieved through a share swap with former shareholders in exchange for one issued ordinary share of African Sun Limited for every 3,98 Dawn issued shares.
