Old Mutual to invest $25 million in hostels
Old Mutual Investment Group has unveiled plans to invest $25 million [about K18.3 billion] into a public university hostels construction project.
The firm plans to complete the project within two years using pension funds and funds from yet-to-be-disclosed development partners.
Old Mutual Group Chief Executive Officer, Edith Jiya, said this in Blantyre on Friday on the sidelines of a signing ceremony of an agreement between one of the two successful bidders for the project, M and M Consortium, representatives of the universities, government and the Public Private Partnership Commission (PPPC).
According to Jiya, the firm is finalising paperwork to put pen to paper for the project.
“We are just finalising our mandates to put pen to paper. Obviously, for us, as an investor, the sooner the construction is finished, the better because we also realise the benefits out of the project.
“However, at this point, it is subject to the conclusion we are waiting for the signing. As soon as that is done, we estimate that it should not take us more than 24 months,” Jiya said.
The firm was allocated plots at Lilongwe University of Agriculture and Natural Resources Bunda Campus as well as College of Medicine campuses in Blantyre and Lilongwe where it is expected to build hostels with a bed capacity of 4,700.
According to Jiya, the project will be implemented in phases with some of the hostels expected to be handed over once completed.
PPPC Chief Executive Officer, Jimmy Lipunga, expressed optimism that they would sign the agreement soon.
“The investors are motivated. It is exciting to mobilise the resources, not only the money per se, but the thrill to be part of a legacy of implementing something that will make a difference in the lives of our students in Malawi,” Lipunga said.
He said, after the signing, there will be approximately a three-month period during which the investors will have to perfect their designs and work plans.