ZPI in $20m property investments

HARARE - Zimre Property Investment (ZPI) is planning to invest over $20 million in construction projects across the country, the company has announced.

Company chairperson Jean Maguranyanga yesterday said ZPI had completed the acquisition of land in Victoria Falls and would soon commence the construction of a shopping mall in the resort town.

“The project, estimated to cost $10 million, will comprise a 5 000 square metre shopping centre anchored by one of the major retail chains,” she said.

Maguranyanga noted that the Zimbabwe Stock Exchange-listed property firm was also planning to construct Nicoz House and Selbourne Park for student accommodation in Bulawayo.

“These two projects are expected to commence in the third quarter of 2017. They involve construction and refurbishment of Nicoz House Bulawayo at the corner of Fort Street and 8th Avenue, into student accommodation offering approximately 190 beds and construction of five blocks of students’ hostels in Selbourne Park offering 900 beds,” she said.

The two projects in Bulawayo are expected to cost about $9,4 million.

ZPI has also received an environmental impact assessment certificate from the Environmental Management Agency for its Merwede housing project in Harare.

Maguranyanga said the servicing of stands was set to commence anytime because the contractor has now been engaged.

“This project is located in the Snake Park suburb, off the Harare-Bulawayo highway and comprises 128 residential stands averaging 200 square metres each,” she said, adding that the estimated cost of the project is $0,65 million.

In the six months to June 2017, ZPI saw its revenues declining by seven percent to $2,57 million from the $2,76 million achieved in the same period last year.

The group’s chairperson noted that pressure on rental rates and the increase in voids negatively affected rental performance resulting in a decline in revenues.

“Projects income for the period grew by three percent from $1,08 million in the previous year to $1,11 million,” Maguranyanga said.

She further indicated that the company’s total administration costs decreased by 23 percent compared to the previous corresponding period to $1,03 million from $1,34 million in response to cost control measures implemented.

Operating profit for the half year marginally grew by nine percent to $0,47 million compared to $0,43 million achieved in the prior period.

In the period under review, ZPI’s investment property portfolio remained subdued, while rental income declined by 14 percent to $1,41 million compared to $1,64 million recorded in the same period in 2016.

“The average portfolio rental yield remained at seven percent while voids went up from 25 percent to 26 percent during the reporting period,” Maguranyanga said.

The property firm declared an interim dividend of 0,012 cents after registering $645 835 profit in the half year.

 

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