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Oliver Kazunga, Senior Business Reporter
REAL estate company, Zimre Property Investments (ZPI), plans to build a US$1,6 million lodge in Victoria Falls once the project is approved.

Last year, the Zimbabwe Stock Exchange-listed concern announced that it intended to introduce more projects this year as part of the firm’s value preservation strategy and efforts to stay afloat during turbulent times.

Already the company is benefiting from some of its completed projects such as Sawanga Mall in Victoria Falls and Nicoz House in Bulawayo, both of which presently contribute significantly to its revenue streams as well as delivering value to shareholders.

In a statement, accompanying financial results for the half-year ended June 30, 2020, the company said the process of securing a development permit for construction of a lodge in Victoria Falls was at an advanced stage.

“The project involves construction of a 40-roomed lodge facility at an estimated cost of US$1,6 million. Works are expected to commence once regulatory approvals are granted,” it said.

ZPI said despite the obtaining macro-economic challenges, the portfolio performed well with rentals remaining resilient in the face of mounting pressure on rental rates. The company said rental income was boosted by regular upward reviews and improved turnover rental on retail space.

“Month-on-month rent collection averaged 100 percent for the period under review, a decent performance considering the challenging operating environment,” said ZPI.

“The average portfolio vacancy rate marginally worsened to 23 percent from 22 percent over the reporting period.

Harare Central Business District (CBD) office, Bulawayo CBD office and the Gweru industrial facility recorded the highest void rates.”

Investment properties were valued at ZWL$2,25 billion by an independent value as at June 30, 2020. This reflects a 75 percent increase from December 2019. In US$ terms, however, the portfolio value declined and the decrease is reflective of the discount on portfolio rental income in US$ terms.

Total revenue for the period under review declined by 29 percent to ZWL$27,06 million from ZWL$37,96 million achieved in the first half of 2019. Rental income grew by 27 percent to ZWL$24,21 million from ZWL$19,05 million attained in the corresponding period last year.

“Projects income significantly declined during the half year mainly as a result of the Covid-19-induced lockdown, which restricted marketing of the stands and movement of potential purchasers,” said ZPI.

“Sales amounted to ZWL$2,38 million, down from ZWL$18,13 million achieved in the previous half year, an 87 percent decline.”

Investment properties achieved a fair value gain of ZWL$963,02 million for the half year compared to ZWL$639,72 million in the relative period last year.

The firm adopted cost control measures throughout the reporting period resulting in total administration costs of ZWL$19,96 million compared to ZWL$21,75 million the previous half year. The company realised a profit for the half year of ZWL$946,67 million compared to ZWL$580,67 million in the same period last year. — @okazunga.