By Mary Taruvinga
CHINHOYI University of Technology (CUT) now boasts of being the first tertiary institution in Zimbabwe with a state-of-the-art accommodation facility in its proximity following construction of Varsity Heights, which accommodates 384 students.
The facility is valued at US$8.8 million and was made possible through the collaboration and support of the project lead investor, the Public Service Pension Fund, which has 80% stake.
Varsity Heights is a brainchild of First Mutual Holdings, which saw the need to set up the facility due to accommodation shortages experienced by students.
Other partners include First Mutual Holdings subsidiaries— First Mutual Life, First Mutual Health, Deloitte Pension Fund, Nicoz Diamond, and the Local Autorities Pension Fund among others.
President Emmerson Mnangagwa officially unveiled the accommodation facility as well as an administration block at CUT on Friday and applauded improvements that followed reconfiguration of the Public Service Pension in 2018.
“As a result, the Fund is fast becoming a profitable investment vehicle, which not only drives sustainable docio-economic development but also creates wealth for its contributors.
“To date, the investments, initiated through the Public Service Pension Fund, are more than just buildings and infrastructure.
“They are tangible evidence of my government’s commitment to availing comprehensive higher quality of life as well as dignity, comfort and security to our people,” he said.
Going forward, the Fund is directed to develop commercial properties in all parts of the country, including at district snd ward levels to accelerate rural industrialisation and modernisation.
Public Services Commission chairperson Vincent Hungwe said completion of Varsity Heights reflects government’s commitment to new ideas and methods that enhance efficiency in managing the Fund.
“This ownership structure demonstrates our determination to fortify the find and strengthen the prospects for its beneficiaries, the civil servants of our dear land Zimbabwe,” he said.
First Mutual Wealth Management Pvt Ltd General Manager Thomas Mutswiti said more projects are lined up.
“So, one of the things that we did look at was to do research to say we have got Chinhoyi University of Technology just across the road… so, we have got an enrolment that was upwards of 10,000 at the time when we did this particular investment. And on campus, they had about 1,200 rooms available.
“What it meant is you had almost more than 10,000 rooms that were in short supply. It presented an opportunity for us as investors to say we can plug the gap from an infrastructure provision perspective.
“Also, if you look at it from another perspective, government was then driving the infrastructure growth to say let’s reduce accommodation shortage for both the education sector and also even from a contribution to the economy as it is on its own.
“That’s how we then came to be able to do this project.”
Mutswiti said they then identified the design team and put together the investors to execute the project.
“At completion, we are looking at almost US$7.8 million that was put into this particular project with the public services, the major investor, with the controlling stake, and the other individual investors that I’ve mentioned, some of the investors.”
He further explained, “So, First Mutual worth is not necessarily a direct investor, but its the partner that then pulls together the investors that have got the funds.
“That’s what an asset manager typically does in terms of the investment framework for this particular environment that we do work in.”
Mutswiti said they have another project that they are working with predominantly with the Public Service Pension Fund again and also with First Mutual investing companies like First Mutual Life and First Mutual Health.
