Zanzibar developer signs marketing agreement

Dar es Salaam. Real estate developer, The Squid Zanzibar Limited, has embarked on a marketing strategy to attract institutional investors in its upcoming project, just two months after it was granted a strategic investment status by the Zanzibar Investment Promotion Authority (ZIPA).

The company, which is the developer of the resort and residence project, The Ocean Pearl Zanzibar, has partnered with CBRE Excellerate to market its project.

The managing director for Squid Limited Zanzibar, Mr George Alexandru, said that as construction of the resort and residence facility continues, the strategic investment status gives benefits and incentives to the developer, the investors and buyers of The Ocean Pearl Zanzibar as specified in ZIPA Act No 14 of 2018.

He said engaging CBRE Excellerate will enable the developer to gain from the experience of the company that provides real estate services across Africa and the Middle East.

“They support predominantly corporate clients who buy services on a contracted basis all across the Middle East and Africa – even globally, depending on their portfolio,” he said.

The project is under construction at Nungwi East in Zanzibar and the developers have already invited local and foreign investors to claim a stake in the project worth over $100 million (over Sh236 billion).

With an initial investment of just $50,000 (Sh118 million), an investor can become part owner of the grand project, The Ocean Pearl Zanzibar, which is slated to become one of its kind in the Isles upon completion of the first phase come January 2025.

With the strategic investment status now granted, the benefits and incentives spread far and wide for both the developer, buyers, and investors, among which include exemption from all duties and taxes on importation and local purchases of construction goods and materials during the project construction.

Other incentives are exemption of income tax on interest on capital borrowed from foreign banks; five years of a grace period on payment of land lease; hundred percent foreign ownership is allowed; and engagement of foreign contractors is allowed.

According to ZIPA, other incentives are a hundred percent exemption of profit tax for repatriate profit; a hundred percent exemption for Accelerated Depreciation for five years; a hundred percent exemption of income tax on interest on capital borrowed from foreign banks.