- Revitus REIT expects a recovery in occupancy and yield ratios by 2026, driven by the full redevelopment of Chester House into a licensed hotel
- Businesses have been moving away from the CBD due to high rentals, congestion, overpopulation, and aging infrastructure
- Revitus plans to renovate two buildings every two years
Harare -Revitus Real Estate Investment Trust (REIT) is anticipating a boom in occupancy and yield ratios in 2026, buoyed by the refurbishment of its flagship asset, Chester House, which is scheduled for completion next year according to the company’s latest full year 2024 financial results.
Chester House’s completion is expected in the second half of 2026, when it will be transformed into a licenced hotel.
There has been a spree, away from the CBD by businesses, mostly due to high rental fees in the capital, overpopulation, congestion and pollution. Most buildings have grown old and Revitus is convinced that with modern renovation, it can take back clients who fled away from old-dilapidated building.
During the fiscal year 2024, Revitus reported an average occupancy level of 39% generating gross rental income of US$907,754 which led to a profit after tax came in at US$665,756.
This resulted in a strong balance sheet with net asset value increasing to US$20.85 million, up from US$20.3 million the previous year.
Investment properties appreciated by 2.2% to close at US$13.54 million, supported by fair value gains and targeted maintenance.
Revitus also maintained prudent financial discipline, funding ongoing renovations from internally generated cash flows while preserving a year-end cash balance of US$61,279.
Rental collection efficiency improved markedly, with average rates rising to 79% in the fourth quarter, up from 69% in the previous quarter reflecting tighter credit controls and tenant repositioning efforts.
This performance came despite challenging economic conditions, including liquidity constraints triggered by the introduction of the Zimbabwe Gold (ZiG) currency in April and the Reserve Bank of Zimbabwe’s contractionary monetary stance, which pushed up rentals and led to the eviction of many company offices from the city centre.
The Chester House redevelopment is the Trust’s pilot conversion project and a key component of its phased refurbishment strategy, aimed at repositioning Revitus as a leading player in Zimbabwe’s urban regeneration space.
The company’s long term investment philosophy is based on a structured redevelopment model. Under this strategy, the Trust plans to renovate two buildings every two years, beginning with Chester House in Harare and followed by Pioneer House in Bulawayo.
Licensed by the Securities and Exchange Commission of Zimbabwe (SECZ) in 2021 and listed on the Zimbabwe Stock Exchange in December 2023, Revitus comprises five commercial properties in Zimbabwe’s central business districts. Its mandate is to unlock investor value through structured capital appreciation and sustainable rental income.
Looking ahead, the Trust remains optimistic about its future prospects. Real estate continues to serve as a dependable hedge against inflation and currency volatility, with growing demand from the informal sector, a thriving SME base.
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