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Sikhulekelani Moyo, [email protected]

LISTED real estate investment trust (Reit) Tigere Property Fund (Tigere), has said the outward migration of businesses from central business districts (CBD) to the suburbs has resulted in an uptick in suburban property values.

The property company, which became the first one to be listed on the Zimbabwe Stock Exchange, said the real estate  sector is growing, with many developments noticed in cluster    houses, offices and student accommodation.

In a statement accompanying the abridged financial results for the year ended December 2023, Mr Brett Abrahamse, who was representing the asset manager, said investors are now investing in real estate as they search for value preservation.

“The outward migration of businesses from the CBD to the suburbs has                 resulted in an uptick in suburban property values.

“Additionally, the ever-growing need for a proven inflation-hedge in the face of currency instability has seen investors continue to invest in the real estate                  sector in search of value preservation,” he said.

“The pace of new developments around the country has increased substantially, with a key focus on cluster housing, corporate offices, student accommodation and shopping centres in attractive locations.”

Reits are investment securities that enable the issuer to pool investors’ funds for the purpose of investing in real estate.

In exchange, the investors receive units in the trust and as beneficiaries of the trust share profits from the real estate assets.

In his portfolio report prospects, Mr Abrahamse said Highland Park phase 1 and Chinamano Corner maintained 100 percent occupancy in the second half of the year and all tenants have swiftly met their operational mandates to date.

He said Highland Park phase 2 officially opened for trading in December 2023, and it was well received by consumers, evidenced by the increased foot traffic and turnovers across all tenants.

“Phase 2 has provided further boost to phase 1 tenants and as it stands, there is an extensive waiting list of tenants for the available spaces.

“The Tigere Reit holds a pre-emptive right to acquire phase 2, details of which will be made available in due course,” he said.

The report also revealed that during the period under review, occupancy rate stands at 100 percent, rental revenue was US$1 481 038, total comprehensive income of US$1 104 736 and net asset value of US$22 546 948.

Meanwhile, Tigere Property Fund has declared a final dividend of US$312 367 being 0,0434 United States cents per unit, in respect of the quarter ended 31 December 2023.

“The dividend will be payable on or about the 30th of April 2024 to all unit-holders of the Reit registered at the close of business on 26th of April 2024.

“The units will be traded cum dividend on the Zimbabwe Stock Exchange up to the 23rd of April 2024 and ex-dividend as from the 24th of April 2024. The applicable unit-holders’ tax will be deducted from the gross dividends,” reads the dividend declaration    statement.

The advent of Reits has been described as a unique opportunity for massive growth of the property, insurance and pension fund sector, as it has several embedded benefits and has prospects to lure investors.

Last year the Zimbabwe Stock Exchange launched the Reit Association, which is meant to bring development                                                                         in the property sector. — @SikhulekelaniM1