Dar es Salaam. Absa Bank Tanzania Limited and a real estate developer known as The Squid Zanzibar Limited, have signed a mortgage agreement that will see the bank being the sole lender for Tanzanians seeking to invest in the latter’s facility known as The Ocean Pearl Zanzibar.
The deal, which comes only a few months after the bank launched its revamped mortgage proposition, allows Tanzanians, both residents and non-residents, to invest in Zanzibar’s stunning 5-star resort overlooking the Indian Ocean and rent it out as a serviced holiday or corporate stay space through an on-site hospitality management company.
Completion of the first phase of The Ocean Pearl Zanzibar is set for mid-2025.
It will contain different types of apartments including studios, penthouse and luxury villas.
The managing director for Squid Zanzibar Limited, Mr George Alexandru, said in Dar es Salaam at the weekend that the agreement offers potential investors an investment opportunity for those who have been looking to get into the hospitality business without wanting to deal with the hassles of day-to-day management of a hotel.
“Through our on-site hospitality management company, we take care of the hotel management hassle for our investors and allow them time to focus on the things that matter most to them while they continue to enjoy handsome returns on their investments,” he said.
Absa Bank’s head of retail banking, Ms Ndabu Swere, said the deal was part of the promises t6e lender made when it revamped its mortgage proposition in February.
“During that time, we promised to continue to enhance our proposition even further. And now within just six months we have come up with another great proposition that’s first of its kind in the market,” she said.
She said with its Home Purchase Loan, the bank will finance up to 70 percent (studios) and 60 percent (villas and penthouses) of the full purchase price of the condos.
“With the units starting at a sale price of Sh456 million ($179,000) for the studio units and going up to Sh1.04 billion ($410,000) for the villas, it means that customers can capitalize on the revised maximum Home Purchase Loan size which is now at Sh1 billion to finance their investment,” she said. The repayment period goes up to 25 years.