Hotel plan for prime plot Developers get 7-year itch

SEVEN years since plans to build a five-star hotel in the heart of the Windhoek fell apart, another developer has submitted a proposal to the City Council to erect a hotel and office complex on the same spot.

The Namibian has learnt that the United Africa Group is behind a submission to the City to build a luxury hotel, business complex and up-market apartments on what is now the Ehafo Parking lot between the Kalahari Sands Hotel and the imposing Supreme Court. Both parties are tight-lipped at this stage on the details of the plan.NEGOTIATIONS UNDERWAYThe City’s Corporate Marketing Officer, Scheifert Shigwedha, confirmed to The Namibian that the City had received a proposal from an investor to develop the popular parking area.However, he declined to reveal the outfit’s name or divulge any further details, saying the proposal was still being negotiated.The developer, United Africa Group, would also not elaborate on its intentions.Group General Manager Simba Chanduru said it had enlisted a team of professionals to handle the process and that they were close to finalising the plan.He said it was thus too sensitive to elaborate at this stage.In 1997, the City Council and a Malaysian company, Freedom Square, sealed an agreement after more than a year of negotiations to build a N$200 million dollar hotel and business complex.Freedom Land’s parent company, the Malaysian South South Corporation, was to pay the more than N$15 million for the plot over a period of time – and made a first instalment of N$2 million for the land.But a year later the plan fell through, much to the relief of the hospitality industry, which opposed the development, arguing that it would have a detrimental effect on existing hotels in the City.At that time, the move was also resisted by a number of Councillors and residents.Among others, they felt it would be a blot on the landscape.The Malaysian developer had said that it wanted to build the hotel to lure the Asian and Pacific markets to Windhoek.Both parties are tight-lipped at this stage on the details of the plan.NEGOTIATIONS UNDERWAYThe City’s Corporate Marketing Officer, Scheifert Shigwedha, confirmed to The Namibian that the City had received a proposal from an investor to develop the popular parking area.However, he declined to reveal the outfit’s name or divulge any further details, saying the proposal was still being negotiated.The developer, United Africa Group, would also not elaborate on its intentions.Group General Manager Simba Chanduru said it had enlisted a team of professionals to handle the process and that they were close to finalising the plan.He said it was thus too sensitive to elaborate at this stage.In 1997, the City Council and a Malaysian company, Freedom Square, sealed an agreement after more than a year of negotiations to build a N$200 million dollar hotel and business complex.Freedom Land’s parent company, the Malaysian South South Corporation, was to pay the more than N$15 million for the plot over a period of time – and made a first instalment of N$2 million for the land.But a year later the plan fell through, much to the relief of the hospitality industry, which opposed the development, arguing that it would have a detrimental effect on existing hotels in the City.At that time, the move was also resisted by a number of Councillors and residents.Among others, they felt it would be a blot on the landscape.The Malaysian developer had said that it wanted to build the hotel to lure the Asian and Pacific markets to Windhoek.