HARARE- Joina City, Zimbabwe’s prime single largest commercial and retail property is reeling under low occupancy as voids and rental arrears increase.

In the 6 months period to June 2017, the property recorded an occupancy level of 54% down from 60% in the first half of the prior year. Effectively this means half of the property is without tenants.

The low occupancy derives from a generally weak macro-environment characterized with low aggregate demand as incomes in Zimbabwe shrink.

Businesses have therefore found it difficult to maintain CBD commercial properties occupancy as their income decline, opting instead for value alternatives such as suburban offices.

In the 6 months period, Joina city generated total revenue amounting to $899,000 while closing the period with an operating loss position of -$148,000.  In the same period last year, Joina City reported a loss of -$247,000.

Joina City’s metrics are such that the structure is approximately 64,000m2 of gross build and comprises approximately 600 parking bays, 15,415m2 of lettable retail space and 11,436m2 of lettable office space.

The building occupies an entire city block, which is the only one of its kind and scale within the centre of the Harare CBD.

Joina city is majority owned by Masawara a investments Holding company listed on London Stock Exchange’s AIM. Masawara investments are concentrated in Southern Africa and predominantly in Zimbabwe.

Masawara owns 40% of Joina City, having sold a substantial stake to other institutional investors including NSSA which snapped shares in 2012. A 2010 valuation by CB Richard Ellis valued Joina City at US$ 53.8 million.

According to Masawara, the 6% decline in Joina's occupancy was mainly driven by the unit's decision to cancel the lease contracts of non-performing tenants.