RIVERSTONE MALL RATES CUT BY 40%

MANZINI – The Riverstone Mall has had its request for a rates reduction from the Municipal Council of Manzini approved.
Riverstone Mall, through the Swaki Group Director Theo Hlophe, had requested a 50 per cent rates cut and the municipalility granted it 40 per cent.

This was revealed during the municipality’s meeting on Thursday evening. 
In a letter directed to the Municipality’s clerk, Riverstone Mall explained that the rates were currently extremely burdensome to it and had a negative effect on the financial viability of the business.

Part of the document read: “At the current rates levied by the council, rates will constitute 62 per cent of our operational costs and our cost to income ratio will be 65 per cent.
“A cost to income ratio for a business of our size and nature is generally expected to be not more than 30 per cent.”

Affected

The letter further explained that Riverstone Mall was affected by the current slow economic climate with their tenants being put under extreme pressure to pay rentals due to low turnovers.
“We are a flagship development for Manzini and our inability to continue operations will have a detrimental effect on prospective investors’ confidence in the town,” read the document, which is in our possession.
In response to this letter, the municipality requested that Riverstone Mall present its financials.

According to a report presented by the Council’s Finance, Audit and Administration Committee, from their pursuant meetings, it was found that about 40 per cent Riverstone Mall’s revenue go towards settling their rates bill.
The report was presented on Thursday during the council’s monthly statutory meeting.

Councillors

During the meeting, the Council’s Chief Executive Officer (CEO) Lungile Dlamini told councillors that the matter was brought to the attention of the Finance Committee.
Currently, the complex contributes E3.6 million (actual figure is E3 649 868.68) to the council’s revenue.
The report also stated that with the new valuation coming into effect, the rates for the said property would stand at E2.9 million (the actual figure is E2 914 710.33).

Post your comment

Your name:

Your e-mail address:

Add your comments:

Please enter the code you see in the image:

Image:

Code: