from DANAI MWARUMBWA in Harare, Zimbabwe
Zimbabwe Bureau
HARARE, (CAJ News) – ZIMBABWE’S Rainbow Tourism Group (RTG) is in the process of acquiring commercial property in neighbouring South Africa for R98 million (US$5,6 million).
It has entered into a Sale and Purchase Agreement with Elleke Hospitality Proprietary Limited for the acquisition of the seven-storey property located in Cape Town.
The property, which is currently a commercial asset, will undergo adaptive reuse and refurbishment to transform it into a branded hotel.
The acquisition marks RTG’s entry into the South African market and is aligned with the group’s long-term strategy to expand its hospitality footprint into high-growth regional destinations.
It noted Cape Town remained one of the most attractive tourism and investment locations on the African continent.
The coastal city benefits from consistent international arrivals, robust infrastructure, and its position as a gateway city to Southern Africa.
Tapiwa Mari, RTG secretary, said the investment is aligned with the board’s overarching mandate to identify and pursue growth opportunities that support the group’s long-term vision of expansion.
“It marks a significant milestone in RTG’s regional growth strategy and affirms the Company’s commitment to unlocking long-term shareholder value,” Mari said.
To finance the acquisition, RTG has secured a loan facility of approximately $6 million from a local financial institution.
– CAJ News