Young Africans Sports Club (Yanga) has secured a Sh5.5 billion loan from Azania Bank to complete construction of its 14-storey commercial building in central Dar es Salaam.
The project, known as Yanga Tower, is located around Mafia and Nyamwezi streets and is expected to include shops and spaces for businesses and institutions.
Yanga president Engineer Hersi Said said the financing agreement signed on September 9 would allow the club to complete the long-running project and turn the property into a sustainable source of income.
“This is a responsibility to advance a vision that we started some time ago and which is now being implemented,” Mr Hersi said during the signing ceremony in Dar es Salaam.
However, the club will have to repay the financing, making the building’s ability to generate income critical to the project’s success.
Mr Hersi said Yanga was counting on the building’s location and commercial facilities to create multiple revenue streams that would enable the club to service the loan.
“We believe the location of this building and its uses will provide various sources of revenue that will enable the project to operate and repay the loan,” he said.
The development is part of Yanga’s efforts to expand its commercial assets and create income outside football operations.
The club has not disclosed the expected completion date or projected annual revenue from the building.
Meanwhile, Group Six QS representative Leon said the project team would focus on ensuring the Sh5.5 billion investment delivers value for money while meeting the required construction and quality standards.
He said the project would also be completed within the agreed timeframe.
“I thank Yanga for valuing us and giving us the opportunity to participate in this project,” he said.