Property firm Pearl Properties posted an increase in rental income of 9,91% for the four months to April 2012 compared to December 31 2011.
Rental income for the group stood at $2,8 million for the four months under review compared to $2,55 million in December 2011, indicating a variance of 1,21% from the budgeted $2 839 million.
The company’s general manager, Peddy Chikunguru, at an annual general meeting (AGM) yesterday said rental yield declined to 8,18% from 9,80% in December last year.
But the average rental per square metre was up 4% to $7,62 from $7,33 in December 2011. He said the collection rate was 74,9%, down from 77,6% last year reflecting normal trend for the first half and expected the trend to improve in the second half of the year.
Pearl Properties occupancy rate was 1, 42% up to 78,6% from 77,5% as at December 31 2012.
Chikunguru said the firm will be opening George Square shopping centre at Kamfinsa in Harare next month with tenants already finalising fittings.
The company invested $1,2 million for the shopping centre last year, while $2,7 million was invested in the Kamfinsa cluster housing project.
“The Kamfinsa cluster housing project has been retendered. Negotiations are underway. The contractor has been identified and contract negotiations are in progress. The Arundel Office Park Extension has been put on hold pending tenant negotiations,” he said.
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The Kamfinsa cluster project was supposed to have been completed in nine months since last September.
Four new board members were appointed to the board at the AGM and these include Andreas Mlalazi, Nangisai Jessica Mugabe, John Philemon Travlos and James Keith Gibbons.
Rental income for the group for the full-year ended December 31 2011 stood at $8 million due to successful rental review last year, while direct property expenses were $1,16 million and operating profit was$5,47 million for the full-year.