ZPI’s projects income shrinks due to COVID-19 impact

  • HY2020 sales down 87%
  • Defers dividend payment due to COVID-19 related uncertainties
  • Official opening ceremony of Sawanga Shopping Mall in Victoria Falls set for Q4

Harare – Listed property concern, Zimre Property Investments (ZPI) said projects income significantly declined during the half year ended 30 June 2020 mainly as a result of the global coronavirus (COVID-19) induced lockdown which restricted marketing of the stands and movement of potential purchasers.

Sales during the period under review amounted to ZWL2.38 million, down from ZWL18.13 million achieved in the previous half year, representing an 87% decline.

Government introduced a nationwide lockdown back in March 2020 as part of the World Health Organisation’s (WHO) guidelines to curb the spread of the virus. At that time, there was only nine confirmed cases of the virus in Zimbabwe and only one death.

As necessary as the measures were, businesses were left in a tight spot, with most deprived of income.

In a statement accompanying the financials for the half-year period, ZPI Chairperson Jean Maguranyanga said the Board has resolved not to declare an interim dividend for the half year in light of the uncertainties brought about by the COVID-19 pandemic and lockdown.

She however, expressed optimism that the company will be able to achieve its development targets.

“While the short to medium-term remains highly unpredictable due to macro-economic challenges and impact of COVID -19 pandemic, the Company believes that the future is in collaborative and syndicated development approach.

“I look forward to breaking ground for a cluster development in Harare and Victoria Falls Lodge,” said Ms Maguranyanga.

The official opening ceremony of Sawanga Shopping Mall in Victoria Falls is also planned for the fourth quarter.

The process of securing development permit for construction of a lodge in Victoria Falls is at an advanced stage. The project involves construction of a 40-roomed lodge facility at an estimated cost of US$1.6 million. Works are expected to commence once regulatory approvals are granted.

In addition, the development of the Adylin Townhouse in Westgate is expected to commence in the course of the fourth quarter. The project is located at Westgate off old Mazowe Road and comprises 80, 2 and 3 bed cluster units.

According to Ms Maguranyanga, the total expected cost of the project is US$6 million.

“The project will sell off-plan once preliminary and regulatory issues are cleared,” he said.

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