The diversified financial institution is carrying out this project under its subsidiary Erarah Investments (Private) Limited.
Trust Holdings Chief Executive, William Nyemba, said Erarah Investments currently owns serviced residential land in the Borrowdale Brooke Township and the target was to build about 50 cluster housing units.
"Under the now fairly favourable operating environment, the shareholders of Erarah resolved to resume the construction of additional units for sale," Nyemba said.
"The strategy is to build and sell the Units, as it is not viable to sell the serviced stands."
Erarah falls under Trust Properties (Private) Limited, which is 90 percent owned by Trust Financial Holdings Limited currently chaired by Josh Sachikonye, who is Managing Director of major mining concern, Rio Zimbabwe Limited.
As at December 31, 2010, the TFHL real estate portfolio directly owned by Trust Holdings Limited continued to buttress the Group’s value.
Currently, however, TFHL has direct interests in properties through Transtobac (Private) Limited (50 percent), Newlands By Pass Holdings Limited (20 percent), a company that has a 40 percent shareholding in the company that owns rights to the Newlands By Pass Road and Erarah Investments (Private) Limited (25 percent).
TFHL is investing US$8,5 million constructing an upmarket Commercial Office and Retail Park in Harare's Newlands low density suburb which is now ready for development following the completion of the Newlands By Pass Road.
Nyemba said design models had been done by Osborne Lange of South Africa for both the Commercial and Retail Parks.
He said in 2010 his Group's main focus was to "re-organise and consolidate the functions of the three Small Business Units (SBUs), Trust Financial Services, Trust Properties and Trust Agriculture to reflect the Group's ambition of providing "value to shareholders".
Nyemba said his Group already had more than $15 million required by the Reserve Bank of Zimbabwe Statutory Requirements for commercial banks.
"We have about $15 million right now. We intend to earn more cash from our 25 percent stake in First Mutual Limited. We could use this money to create activity and under write more business,” said Nyemba.
TFHL was re-listed on the Zimbabwe Stock Exchange and had its commercial banking licence for its Trust Bank Limited returned by the RBZ last year.
Trust also had its seized assets, including Trust Towers high rise building along Harare's Samora Machel Avenue, returned by the Central Bank.
As at December 31, 2010, shareholders equity stood at $16,572 million.
Post published in: Economy