ZIMRE Property Investment Limited has sold off its flagship — Zimre Centre in Harare — for $10,8 million with the proceeds earmarked for the development of the Victoria Falls and Bulawayo projects.
BY MTHANDAZO NYONI
In a statement accompanying the group’s abridged audited results for the year ended December 31, 2017 board chairperson, Jean Maguranyanga said the disposal of Zimre Centre was part of the restructuring of the portfolio mix.
“The company has, to this end, disposed of the flagship Zimre Centre in Harare for $10,8 million, with the proceeds earmarked for the development of the Victoria Falls shopping mall, as well as conversion of Nicoz House in Bulawayo to student accommodation,” she said.
The $13 million Victoria Falls shopping mall project is anchored by one of the major retail chains, TM Pick n Pay and provides approximately 5 000 square metres of retail space. It comprises of 23 shops of various sizes including banks, concept stores, food courts, a restaurant, coffee shops, jewellery and curio shops, a gym and a fuel service station.
“Construction commenced in January 2018 with the contractor, Masimba Construction, already fully established on site. Completion is expected by January 31 2019,” Maguranyanga said.
On the Bulawayo project, Maguranyanga said it would be completed in August 2018.
“Consistent with the need to diversify the property portfolio, reduce concentration in CBD offices and to include new asset classes, your company is converting Nicoz House Bulawayo from offices to student accommodation,” she said.
“This project, estimated to cost $1,8 million, commenced in January 2018 and is expected to be completed in August 2018. It will provide approximately 194 beds, a canteen and student amenities on the lower floors.”
The group’s total revenue declined by 4% to $5,27 million from $5,52 million recorded in the corresponding period in 2016.
Contributing to the depressed revenue performance was rental income, which declined by 11% to 2,78 million from $3,14 million in 2016, Maguranyanga said.
Projects income for the year amounted to $2,40 million, 6% better than in 2016.
Operating profit grew by 100% to $1,44 million mainly buoyed by sales of stands from its current and ongoing development projects, he said.