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Nico, Eris in properties Pact

Category News: Malawi

Conglomerate Nico Holdings Group has sealed a partnership deal with South Africa’s Eris Property Group, which will see a joint capital injection of not less than $50 million into property development and investment in Malawi.

This pact will be handled through a company called Eris Property Malawi Joint Venture and Property Development and Property Management to be established by the two groups in August this year.

Nico Holdings Managing Director, Vizenge Kumwenda, remained upbeat about proceeding with construction of top class infrastructure in the hotel sector, shopping malls or retail shops, offices during the signing in ceremony in Blantyre on Wednesday.

He said the deal is part of Nico Holdings plans to expand its property asset base in Malawi through construction of hotels and shopping malls in major cities and towns.

“The core business will be property development and management in Malawi. Nico will be the first to embark on this ground breaking hospitality sectors, including shopping malls as was the case with Chichiri and Lilongwe shopping malls.

He said, with the joint venture, they will be able start work on construction of a hotel in Lilongwe and modern shopping malls in cities such as Mzuzu.

Eris Property Group Head of Property Management, Peter Stainton, touted Nico Holdings for having the much needed muscle in areas of property management and development.

“Nico Holdings has proved to be a leader hence the joint venture, which will go a long way in boosting the economy,” Stainton said.

Eris Property Group has an asset base of more than $4 billion dollars in Africa, with most of its properties in countries such as South Africa, Ghana, Namibia, Mauritius, Botswana, Zambia, among others.

With Malawi’s potential growth of pension funds likely to be K1.3 trillion by the end of 2018, Nico Holdings hopes that part of that should find its way into properties hence the joint partnership with Eris Group.

The establishment of the company signals job creation for the Malawian youth unemployed population and increased tax payment to government, including increased profit returns to Nico Holdings Group.

Author: George Mhangoon: in Business

Submitted 22 Aug 18 / Views 1522