- Invests K37bn to set up company
Nico Holdings Limited has partnered a South African-based Eris Property Group (Pyt) Limited to set up a local property firm with an initial investment of $50 million (about K37 billion).
Officials from the two firms signed the partnership agreement in Blantyre on Wednesday, a development that will result in the creation of jobs for some Malawians.
In an interview, Nico Holdings Limited managing director Vizenge Kumwenda said the new company, which is a 50-50 venture, could take on board some Malawians.
“The leaders in the new company will be experts from South Africa, but at the same time we will be recruiting young Malawian professionals who will have the opportunity to learn and be trained by experts who eventually will leave and hand over the company to Malawians,” he said.
Kumwenda said the new firm is expected to roll out on August 1 with its headquarters in Blantyre.
He said the partnership brings professional long-term property development and management capabilities in the Malawi market.
“We have been a leader in property development in the country with our in-house expertise, but looking at development within the Nico Holdings group and growth of funds we are managing in proportion to the development in the country, we realise that we need to develop and invest more in property with the necessary expertise; hence, partnering with a specialised firm in this type of business,” said Kumwenda.
He said the company is looking at developing a hotel in Lilongwe and other developments such as hotel extension of Blantyre Hotel Limited’s (BHL)-owned Ryalls Hotel and office complex in the major cities of the country.
Eris Property Group head of property management Peter Stainton said the partnership is built on the property investment needs of Malawi, and Eris Property in particular, will ensure that it works to lead the property development industry for Malawi.
He said the partnership brings about satisfaction to companies that want to relocate to Malawi by providing a platform for that, but also supporting growth of other companies
Eris Property Group (Pty) Limited provides a range of commercial property services in the South African and sub-Saharan African markets. It focuses on the development or re-development of commercial, retail and industrial properties; offers property management services, including letting of vacant space and lease administration.