Madhvani group takes over Nakumatt land

East Africa’s investment giants, Madhvani Group of Companies will construct a multi-million dollar hotel on the 30,000 sq mt, piece of land in Kimihurura that had earlier on been allocated to Nakumatt Holdings. The land that is currently being occupied by the RDF Republican Guards brigade was allocated through a ministerial decree allowing Kigali City Council (KCC) to lease it out to potential investors. The decision to reallocate the land which is adjacent to the proposed site for the Kigali Convention Centre was taken after the holding company dragged its feet in taking it citing its high piece. The land had been allocated to Nakumatt Holdings to expand on their Kigali operations after setting up a 24-hour shopping centre last year. Nakumatt, a major department store in East Africa had promised to invest over $20m in various projects including a shopping mall that would be referred to as; The Gateway Mall, offices and Apartments. By 2010, the retail chain expects to have furthered their expansion with three branches in Uganda, two in Rwanda and four in Tanzania. According to KCC director of communication, Bruno Rangira, the land is valued at US$300,000 but Nakumatt declined to take it up saying it was valued highly. “Kigali City gave them a proposal of the Kimihurura roundabout and the price of acquiring that land but they have not yet come back to us. So you may ask Nakumatt if the project is stalled not us” said Rangira during an interview. However a source in the Kenya-based holding company who sought anonymity intimated that Nakumatt pulled the plug on the Kimihurura project to concentrate on its branch at Union Trade Centre in downtown Kigali. According to the source, Nakumatt communicated this during a meeting with officials of Rwanda Development Board and local government officials from Kigali City and Gasabo district. According to KCC, Madhvani group has accepted to take up the land.“People from Madhvani Group have been here today (yesterday) and they have visited the place, and have agreed with City Council to buy the land,” Rangira confirmed. Efforts to get a comment from Nakumatt’s headquarters and their representatives in Kigali proved futile as they couldn’t reply to the various e-mails sent to them. According to KCC, now, part of the land will be taken up by Madhavi group of companies to erect a multi-million dollar hotel while the rest will be used as security by KCC to borrow from the public through municipal bonds. Municipal bonds are debt obligations issued by states, cities and other governmental entities to raise money. KCC will use the funds to put power lines and a sewerage system on the remaining piece of land. It is also supposed to avail water and a road network. Madhvani Group, is one of the largest diversified privately owned groups in East Africa with various business interests spreading across various African countries, the Middle East, India and North America and employs close to 10,000 people. In the growing services sector, the group has a presence in hotels and tourism, insurance IT, media & communications and construction. The Group also owns and operates Kabuye Sugar Works.When contacted for comment, RDB Deputy Chief Executive Officer for Business Operation and Services, Clare Akamanzi said that Nakumatt Holdings is still interested in expanding their operations. “I don’t know when they will be expanding but they are still interested in building another shopping mall in Kigali,” Akamazi said. “About Madhvani’s coming that news to me but I can assure you that that we have enough land to allocate all investors who come to Rwanda.” Ends

National

Madhvani group takes over Nakumatt land