Fidelity forging ahead with Langford Estate development as ZSE drops 0.5%

Fidelity forging ahead with Langford Estate development as ZSE drops 0.5%

HARARE – Fidelity Life Assurance is forging ahead with its Langford Estate housing development project with the company now seeking proposals for detailed civil engineering designs of the residential infrastructure.

Fidelity acquired Langford Farm under a $16 million land for debt swap deal with CFI Holdings and the project was earmarked for commencement in the last quarter of 2016.  Fidelity will develop 11 500 high density residential stands at Langford Estate farm in Waterfalls with an estimated market value of $350 million, inclusive of housing and other developments.

“Fidelity Life Assurance Company intends to develop Langford Estate into modern high-density residential settlement complete with all the necessary social amenities and green areas. In this regard, Fidelity Life Assurance would like to undertake detailed engineering designs by engaging a firm of consulting engineers with the requisite expertise and experience,” the company said.

Langford housing development is anticipated to be profitable with more than $200 million profit before tax and will strengthen the insurance and property developer’s balance sheet giving it capacity to underwrite more business. The project is a successor to the South View Park housing project developed at a cost in excess of $14 million.
Meanwhile, Fidelity did not trade in today’s session on the Zimbabwe Stock Exchange (ZSE) where losses in heavyweight Delta and Mashonaland Holdings dragged down the industrial index to close 0.50% lower at 144.55.
Delta shed 1.5c to close at 88c while Mashonaland Holdings dropped 0.29c to settle at 1.7c.

Retailer, OK Zimbabwe was the only counter which traded in the positive territory after adding 0.38c to trade at 7.48c. The retail chain for its H1 ended September 2016 reported increased sales while cost management propelled the retailer to an improved profit position with after tax profit going up 87.1% to $2.3 million compared to $1.2 million in 2015.

The company anticipates the general macro-economic fundamentals to deteriorate further, but the market will remain competitive to generate increased revenues and profitability.

The Mining index was flat at 58.51 after all the resource counters traded unchanged.

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