ZPI to focus on demand driven business
HARARE, Zimre Property Investments (ZPI) has secured land in Victoria Falls and already paid $1.8 mln as part of the company’s new thrust to build residential properties on demand.
When Zimbabwe switched to the multi currency system, there was a boom in the property sector which resulted in a gold rush major for housing projects, consequently there was saturation of residential housing.
Nonetheless, the boom in the economy was short lived and as recession crept in, demand and uptake for housing was not as projected. ZPI which had invested in some housing projects was also negatively affected.
To mitigate their loss and for the firm to recover, ZPI managing director Edson Muvingi said the company has a new strategy which is to focus on constructing residential properties where there is demand and capacity.
“We have seen potential on growth of tourism activities in Victoria Falls and we have paid $1.8 mln for a piece of land for an accommodation project and we will also focus on student’s accommodation in Bulawayo as well as retail markets,” he said.
He added that some commercial buildings in strategic areas where there is demand for accommodation will be converted into residential properties.
HY16, total group revenue was up 13% to $2,76 mln compared to $2,45 mln in the prior year. Rental income was 9% down to $1,65 mln and voids were up to 25% from 21 percent.
ZPI has been on the market to dispose three city centre buildings located in Harare and Masvingo which are the Zimre Centre and Fidelity Life Towers in Harare and Zimre Centre in Masvingo.
Meanwhile, ZPI is a subsidiary of Zimre Holdings and the group is targeting to increase its footprint in the property sector through increase its shareholding in ZPI to beyond 51%.