ZPI void levels narrow in FY2019

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  • The Company implemented quarterly upward rent reviews
  • Occupancy levels at Sawanga now at 92%
  • Nicoz House secured Zimbabwe Tourism Authority (ZTA) tourist facility status

Harare- ZIMRE Property Investments Limited recorded a decline in portfolio void levels in the year ended 31 December 2019 compared to the prior comparable period.

Portfolio void levels in the period under review stood at 22% compared to 28% registered in the previous year.

The broad sector however was characterised by high levels of voids with Dawn Properties stating that its “business unit continued to be resilient despite a tough operating environment in the property management arena, driven by increased voids…” in the year under review.

In a statement accompanying the Company’s full year financials, Company Chairperson Jean Maguranyanga stated that there was severe pressure on rental rates during the year, particularly for office space.

In order to curb value loss, the Company implemented quarterly upward rent reviews and increased its presence in the retail sector as well as in student accommodation.

“These measures, together with improved occupancy levels across the portfolio, had a positive impact on turnover performance for the year. Rent collection for the period averaged 101% of monthly charges”, Mr. Maguranyanga said.

Rental income marginally increased by 1.4% to ZWL$16.08 million from ZWL$15.85 million the year before while total revenue for the year increased by 8% to ZWL$30.12 million from ZWL$28.01 million achieved in 2018.

The Company realized a profit for the year of ZWL$182.18 million compared to a loss of ZWL$76.33 million the previous year.

Construction of the Victoria Falls based- Sawanga Shopping Mall was completed in the year and the mall is currently at 92% occupancy level.

The Nicoz House for students in Bulawayo which offers 190 beds, in-house kitchen facilities, WI-FI and biometric security access among other facilities has been well received by the student community according to Mr. Maguranyanga.

“The level of occupancy is satisfactory. I am glad to report to you that this facility secured Zimbabwe Tourism Authority (ZTA) tourist facility status. This certification will go a long way in retaining shareholder value”, he added.

Meanwhile, the Company and its parent, Zimre Holdings Limited are said to have entered into negotiations for the acquisition of the entire issued share capital in ZPI which will result in the voluntary delisting of ZPI from the Zimbabwe Stock Exchange (ZSE).

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