Debate on ‘MDC Stadium’ K80m price

There is debate on whether FAM is justified to peg Surestream Stadium [formerly MDC Stadium] at Chilomoni Township at K80 million considering that there is a piece of land adjoining to the facility.

FAM executive committee arrived at the K80 million a fortnight ago, but some quarters feel the figure is on the lower side for the facility which current occupants, Surestream Academy, under its United Kingdom oil firm, Surestream Petroleum Malawi Limited, want to buy.

The Nation compared the stadium with ordinary properties estate agents advertised in last Wednesday’s edition.

An Area 44 house in Lilongwe advertised by Ching’onga Estate Agents will cost K75 million while a five-hectare land in Mpingwe, Blantyre is selling at K80 million. Pioneer Properties [estate agents] advertised an Area 6-5 double storey terraced apartments at K195 million.

On Wednesday, Estate Agents Association interim leader Kenneth Msonda said they consult Surveyors Institute of Malawi before pricing property on behalf of their clients.

“The factors that determine price include age of structure, access road and location.

“In MDC’s case, it is, unlike Chiwembe Stadium, on prime land [in high demand],” Msonda said and referred further questions to the institute.

Before selling property, quantity surveyors and valuation surveyors are involved to determine proper valuation, according to Tiyezge Msonda of TG Msonda and Associates in Lilongwe.

“I cannot tell whether the K80 million is on the lower or higher side,” said the chartered valuation and surveyor. He said factors that determine property price are ascertained after measurements, permissible use of land outside a structure according to town planning, potential for expansion and age of the structure.

The land expert noted that a stadium is not sold on an open market to special interest groups; hence, this involves some bargaining on either side.

Surestream renovated the facility at K50 million after finding it in dilapidated condition.

FAM president Walter Nyamilandu, whose association bought the stadium at K22 million, said they hoped to reach a compromise on the price of the stadium with Surestream whom he said is “a long-term investor in football and it has no commercial interest in the facility”.

“When a request was received for FAM to consider selling the stadium to Surestream, the executive committee ordered for the property to be assessed to determine the market value. To this effect, the property was valued at K115 million after renovations,” Nyamilandu said on Thursday.

“Surestream made on original offer of K50 million, taking into account that they have spent K50 million in refurbishing and renovating the stadium. As negotiations continue, the executive committee has requested for an improved offer to bridge the balance considerably.”