NEWS - NAMIBIA
| 2013-08-05Ramatex portion goes for N$143m
Shinovene Immanuel
GOING, GOING, GONE ... A part of the Ramatex in Windhoek’s Otjomuise has been sold.
THE City of Windhoek has sold part of Ramatex for N$143million to a United States-based textile firm, NamUSA.
The 38-hectare piece of commercial land was once occupied by the Malaysian textile firm Ramatex, which closed shop in 2008. Council decided to sell the land last week after recommendation from its management committee.
NamUSA is a joint venture between business personalities from Namibia and the United States.
Despite council’s approval, the sale has not been finalised since the latest agreement was meant to serve as security since the land is subdivided.
The co-owner of NamUSA, Alfred Cooper, yesterday described the transaction as a “good deal” and that they are waiting for the municipality to provide them with council resolutions to start moving in.
According to council papers, the investors insisted that it would provide them with security if a sale agreement is signed, which can be subject to specific conditions, such as finalisation of the town planning procedures and the obtaining of ministerial approval.
The sale is subject to various conditions including paying occupational rent on the date of the signing agreement until the transfer of land is concluded. Occupation rental, which is at 10% of the valuation, translates into N$1.2 million per month. Council said “the finalisation of the town planning and pedestal procedures within a period of two years be a specific suspensive condition”.
The council also warned that the approval of the sale was based on NamUSA’s business proposal to set up a garment manufacturing plant and that “the sale of this land be for the sole purpose of establishing a garment industry and would remain subject to this provision”. NamUSA is also tasked by the council to enter into negotiations with liquidators with regards to buying the buildings on the land.
The new garment manufactures have also been warned against wet processing, which refers to the various washing, dyeing and finishing techniques using water and other liquids that enhance textiles.
Former owners, the Malaysian textile company Ramatex at one point in 2004 got their license withdrawn after municipality found out that the textile factory was polluting Windhoek’s water sources through “wet processing”.
Another condition is that a restrictive condition be registered against the property when transferred. The ball is now in the court of Minister of Regional and Local Government, Charles Namoloh who has to rubber stamp the deal.
Council says the deal will be withdrawn and sold to other parties if NamUSA fails to agree to terms and conditions of the sale within 30 days of council’s decision.
Municipality initially agreed last year to lease out the land but the investors changed their minds opting to buy the land when council refused to give a lease of more than 10 years, which the investor wanted.
Ramatex closed down in 2008, leaving about 7 000 employees without work. NamUSA has, however, indicated that they intend to employ about 20 000 people. Council has also ordered the eviction of the occupiers of Taiwah Building, the other 22-hectare portion of Ramatex, with immediate effect.
NamUSA is a joint venture between business personalities from Namibia and the United States.
Despite council’s approval, the sale has not been finalised since the latest agreement was meant to serve as security since the land is subdivided.
The co-owner of NamUSA, Alfred Cooper, yesterday described the transaction as a “good deal” and that they are waiting for the municipality to provide them with council resolutions to start moving in.
According to council papers, the investors insisted that it would provide them with security if a sale agreement is signed, which can be subject to specific conditions, such as finalisation of the town planning procedures and the obtaining of ministerial approval.
The sale is subject to various conditions including paying occupational rent on the date of the signing agreement until the transfer of land is concluded. Occupation rental, which is at 10% of the valuation, translates into N$1.2 million per month. Council said “the finalisation of the town planning and pedestal procedures within a period of two years be a specific suspensive condition”.
The council also warned that the approval of the sale was based on NamUSA’s business proposal to set up a garment manufacturing plant and that “the sale of this land be for the sole purpose of establishing a garment industry and would remain subject to this provision”. NamUSA is also tasked by the council to enter into negotiations with liquidators with regards to buying the buildings on the land.
The new garment manufactures have also been warned against wet processing, which refers to the various washing, dyeing and finishing techniques using water and other liquids that enhance textiles.
Former owners, the Malaysian textile company Ramatex at one point in 2004 got their license withdrawn after municipality found out that the textile factory was polluting Windhoek’s water sources through “wet processing”.
Another condition is that a restrictive condition be registered against the property when transferred. The ball is now in the court of Minister of Regional and Local Government, Charles Namoloh who has to rubber stamp the deal.
Council says the deal will be withdrawn and sold to other parties if NamUSA fails to agree to terms and conditions of the sale within 30 days of council’s decision.
Municipality initially agreed last year to lease out the land but the investors changed their minds opting to buy the land when council refused to give a lease of more than 10 years, which the investor wanted.
Ramatex closed down in 2008, leaving about 7 000 employees without work. NamUSA has, however, indicated that they intend to employ about 20 000 people. Council has also ordered the eviction of the occupiers of Taiwah Building, the other 22-hectare portion of Ramatex, with immediate effect.
