Old Mutual is ramping up its investment in Zimbabwe's property sector with plans to develop hotels, shopping centres, office parks and residential estates worth millions of United States dollars, signalling renewed confidence in the country's long-term real estate market.
The projects form part of the financial services group's proposed Development Real Estate Investment Trust (REIT), which is designed to develop, own and manage income-generating property assets while widening access to property investment through Zimbabwe's capital markets.
At the centre of the expansion is The Grange Lifestyle Estate, a US$46.2 million mixed-use development in Harare, where civil works have already commenced.
Spread across a 47-hectare estate, the development will combine premium residential housing with a contemporary shopping centre, restaurants, a supermarket, medical facilities, a gym, a car showroom and a modern office park within a single master-planned community.
Old Mutual said the project has already secured clean freehold title, subdivision approvals and development permits, providing a de-risked platform for phased construction over the next three years.
The proposed Development REIT is expected to open subscriptions during the third quarter of 2026, ahead of a planned listing on the Victoria Falls Stock Exchange (VFEX) in the fourth quarter of 2026.
The company projects an estimated 7.1% gross rental yield, positioning the REIT as a long-term investment vehicle backed by high-quality commercial property assets.
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Old Mutual is partnering with an international hospitality brand to develop a 130-room, internationally branded four-star hotel in Victoria Falls.
The hotel will be built on Stand 1332, Victoria Falls Township Lands, Parkway Drive, close to Victoria Falls National Park, major tourist attractions and transport links.
Designed as an upscale safari-style destination, the hotel will feature 130 guest rooms across standard, deluxe, family and suite categories, each with a private elevated deck overlooking a waterhole and the national park.
Facilities will include a full-service restaurant and pool bar, a conference centre accommodating between 150 and 200 delegates, boardrooms, breakout rooms, a large swimming pool and terrace, a spa with up to four treatment rooms, as well as game drives, bush walks and nature trails.
Old Mutual said construction and fit-out are expected to take 12 months after financial close, while negotiations with the international hotel operator are at an advanced stage.
A feasibility study undertaken by HTI Consulting projects the hotel's occupancy to stabilise at 60% within three to four years of operation.
The property pipeline also includes a mixed-use precinct in Borrowdale comprising premium office space, retail outlets, apartments and a five-star hotel with conference facilities, further expanding the group's commercial real estate footprint.
Old Mutual said the Development REIT will retain ownership of the completed assets while leasing them to specialist operators, creating sustainable rental income and long-term value for investors.
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