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Former President Bakili Muluzi has advertised for sale part of his Limbe, Churchill Road property which he acquired from Lonrho Group.
Muluzi, who is currently national chairman of the ruling UDF, is looking for offers in excess of K160 million (over $1.5 million) for the two properties which formed part of the former Lonrho premises.
Muluzi acquired the property at a cost of K80 million.
One of the buildings currently houses the Ministry of Information and Total Malawi offices while the other one houses Farming and Engineering Services (FES).
An advertisement from his property managers Knight Frank stated that they are looking for K50 million on the first property which covers approximately 0.26 hectares (0.642 acres) comprising of “1,364 square metres of well let offices with leases in force currently providing some K4,939,200 per annum gross income”.
While on the second one the advertisement says it comprises 0.75 hectares (1.853 acres) and is being offered at K110 million.
“The well let improvements comprising of a magnificent showroom, offices, workshops, warehouse, storerooms extend to approximately 3,701 square metres with leases in force currently providing some K10,744,800 gross income per annum complete with concrete car parking and ample space for further development,” reads the advertisement.
But both notices could not give plot numbers for the two properties apart from indicating that they are on Churchill Road in Limbe.
A senior partner at Knight Frank Daud Russell confirmed the intention to dispose of the property, which he said was under Atupele Properties Limited and he said was part of the company’s restructuring process.
Russell said the company is refocusing on new developments like the Keza Office Park property.
Explaining why the notice did not include plot number Russell said: “The property is one of several in a block of properties falling under one plot with one title deed and we are trying to cut it down into several plots.”
He also said although the whole property was bought at K80 million it was justifiable to offer part of it at a higher price than that since the value of such property is based on rental income.
“That property was bought nearly 10 years ago and it is expected to yield more today than it used to,” he said.
Russell said only the Ministry of Information will move out of the premises since it is already relocated to Lilongwe while FES and Total will remain in the buildings they occupy.
In September this year, five months after leaving office, Muluzi, who has been bragging around as the sole bank-roller of his UDF party, was reported to have lined up for sale 10 of his plots in Blantyre and Lilongwe allegedly to pay off debtors some of whom had dragged him to court.
One of the directors of Atupele Properties Limited Atupele Muluzi, son to the former president, in an interview on Thursday said the sale has nothing to do with Muluzi’s financial standing but the company itself.
“The company spent a lot of money during the [May 20] elections campaign, the group itself donated quite a substantial amount of money to the party. At the same time there are a lot of companies and properties which are not generating a lot of income and we would want to focus and invest in something else like real estate, big projects and up market property,” he said.
He said the decision to sell part of the Limbe property was not made by Muluzi but by the Board of Atupele Properties itself.
“The former president does not really have a say on the operations of the group, yes he is the chairman but it’s the board that makes decisions,” he added.
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