AFRICA
While ASL won the tender earlier this year to lease the 294-roomed property owned by
FCB owns 50 percent of
The bank insisted on a two-year lease term as a way of rebuilding the trust "in our business relationship" while ASL wanted 10 years "sufficient to return" its investment."
Some of the tender requirements included bringing in an international hotel brand and making substantial investment in rebranding. ASL, which held the leasehold and operated the hotel since 1997, had partnered
"ASL won the tender, which was adjudicated by
ASL chairman Dr Emmanuel Fundira told the firm's annual general meeting (AGM) yesterday that there had not been consensus on tenure of the lease with FCB, which was offering a tenure of two years against the "tenure in our bid of at least 10 years, which we deemed sufficient to return our envisaged investment into the hotel."
"
"We can now report that these discussions have been concluded without consensus being reached on the tenure. Resultantly, the board has had to make the very difficult but necessary decision to exit the hotel. A formal announcement in this regard will be made in line with ZSE listing requirements," he added.
Earlier, Ms Emily Nemapare, the head of marketing and communication at FCB, had however said the terms and conditions of the tender, upon which ASL had won the right to continue occupation of the hotel property "have not been altered."
"As part of the
"Engagement between relevant parties on the renewal terms are still ongoing and therefore we are unable to comment on any submissions due to the confidential nature of the transaction, "she said.
An undated letter from FCB managing director Mr
The letter also suggested that
"In our meeting on the 14th of June, we discussed the two year-lease that
"You were clear that a 10-year lease was not on offer, you had come to the meeting as a courtesy to inform us of
"As discussed over the last number of months, the 10-year lease is not on offer... and it is with this in mind I request that you as per your proposal, on the 14th June, and commitment to write to us to confirm the surrender of the lease, that you now hournor that commitment as the bank is not prepared to offer a lease to
Phone calls seeking comment from Mr Saungweme were not answered.
Copyright The Herald. Distributed by AllAfrica Global Media (allAfrica.com)., source