Meikles Limited is looking for $50 million to refurbish its hotels and TM Supermarket branches throughout the country as it embarks on a recapitalisation exercise, a senior official has said.
The official said $13 million from the total amount is expected to come through the Pick ‘n’ Pay deal and will go towards the refurbishment of TM Supermarkets.
“We expect to get the funding in our next financial year and also to start the refurbishment process.
The Pick ‘n’ Pay deal once approved will see us refurbishing our branch networks to world standard such as that of Pick ‘n’ Pay stores in South Africa,” he said.
The group is waiting for regulatory approval for Pick ‘n’ Pay that would see its stake increase to 49% and pay the way for the recapitalisation of TM Supermarkets. Meikles and Pick ‘n’ Pay recently concluded negotiations for the South African retail giant to purchase a further 24% stake of TM.
In a statement accompanying its financial results, Meikles Limited chairman John Moxon said the hotels division registered growth in occupancy levels reflecting a strong interest in Zimbabwe as both a tourist and business destination.
Occupancy levels were at 43%, 45% and 66% compared to 30%, 29% and 57% respectively for Meikles Hotel, the Victoria Falls Hotel and Cape Grace Hotel.
“Funding is in place for the first phase of the refurbishment of Meikles Hotel and this will begin in the next month. Further funding is being sorted out for the complete refurbishment of the hotel,” Moxon said.
He said work on the refurbishment of Victoria Falls Hotel had been completed and they were engaging partners to finalise the project and seek medium to long-term funding for its completion.
Meikles Limited recorded an increase in revenue to $330 million for the fifteen months ending March 31 compared to $148 million for the 12 months to December 2009.
The group reported a profit of $6,1 million from a loss of $3,5 million.