Tradehold Limited (JSE:TDH), a UK based investment holding company, has recently announced its plans to buy a 51% stake in Real Estate Investments Zambia Plc (LUSE:REIZ) to expand its businesses in the Sub Saharan region and tap the country’s rapid urbanization rate.
Tradehold currently operates in other African countries and the UK in segments as property-commercial, retail, offices, leisure, and residential as short-term lending and treasury services as well, would make Zambia the fourth country where it has presence after Namibia, Botswana and Mozambique.
The stake in REIZ would help Tradehold to benefit from reliable clients from different economic sectors as Barclays, Deloitte & Touche, Ericsson, the Lusaka Stock Exchange (LUSE), and others that are currently renting units from REIZ in a total area of 50,000 square metres in Lusaka.
According to the Centre for Affordable Housing Finance in Africa (CAHF), Zambia is the country with the highest urbanization rate in Central Africa at a rate of 4.35% per annum, far above other central nations as Central African Republic with 2.61%, Democratic Republic of Congo with 3.96%, Zimbabwe with 2.50%, Botswana with 1.28%, and South Africa with 2.16%.
This rapid urbanization rate has raised property prices in Lusaka making them attractive for investors since currently to rent a one bedroom apartment in the city centre is 4.71% more expensive than renting one in Africa’s biggest economy capital Cape Town in the same area.
Large apartments price in Lusaka are almost twice of those in Cap Town’s prices, with a three bedroom apartment in Lusaka’s city center rental price up to ZMW 24,058.12 per month, according to Numbeo, an online real estate statistics database.
