HARARE- Listed property concern, which has been making serious overtures to diversify its property portfolio over the past few years, has said it cornered inflationary pressure in the final quarter of 2018, through pre-purchases of most its required inputs at 2 of its ongoing projects in Victoria Falls and Bulawayo.

Zimbabwe closed the year with an annual inflation of 46.5%, coming against a background of macroeconomic volatility characterised with cash shortages, forex challenges and exchange rate weaknesses.

In a statement accompanying its 2018 full year financials, Zimre Properties Investments, said it incurred cost increases as suppliers of building materials and contractors adjusted prices. The company stressed that most suppliers insisted on being paid in foreign currency for all imported building materials.

“In order to manage the risk of exchange rate induced cost escalations, the Company pre-purchased the majority of the required materials for the Sawanga Shopping Mall and Nicoz House Bulawayo projects” ZPI stressed.

After disposing a major CBD office property in Harare for $10 million, in a bid to diversify and lower its exposure to CBD office sector, ZPI undertook to construct a $15 million retail shopping mall in Victoria Fall. The mall was initially targeted to cost $13 million.

The resort town is primed as the next big investment destination, against tourism growth prospects in the short to mid-term. Zimbabwe’s tourism is expected to grow into a $10 billion sector from the present $1 billion, by 2030. The majestic Victoria Falls, stands out as the major attraction for tourists into Zimbabwe

In 2018, the town is reported to have run out of hotel room space in most months of the year as record number of visitors toured the falls.

At the end of the first quarter of 2019, ZPI reported that it has completed the construction of Sawanga mall, which will become the first state of art mall in the small resort town.

Sawanga will house some of the world’s famous brands, a concept that is derived from some world popular malls such as Dubai Mall in UAE.

The 5000 square metres mall will consist of 23 shops, food courts, banks, concept houses, coffee shops, a fuel service station and curio shops. 90% the lettable space had already been let before the construction’s completion. The company said its leasing strategy will be to deliver a balanced mix of retailers.

-EQUITY AXIS NEWS