RYAN CHIGOCHE
Zimbabwe Stock Exchange listed property firm, First Mutual Properties ( FMP) is expediting the Arundel Office Park project with construction works set to commence before year-end, the company has said.
The project was initially scheduled to commence in the first half of 2020 but was stalled due to Covid-19 pandemic.
The expediting of the project comes after FMP recently completed the construction of the Mbare Retail warehouse. It was handed over to the tenant , Gain Cash and Carry four months ago.
Board chairman Elisha Moyo said the group has positioned itself to create value for its shareholders by embarking on various projects that are at different stages of execution.
“We are happy to report that the construction designs, tenders and approvals for the Arundel Office Park project were obtained.Construction is scheduled to commence [soon],”Moyo said.
He said Zimbabwe has seen some developments in the industrial and retail warehousing sectors.
Moyo said there has also been an increase in the development of owner-occupied office park style buildings, cluster houses and residential house conversions and new commercial developments especially in suburbs just outside the CBD and on major roads.
“FMP has positioned itself to take advantage of the emerging growth opportunities for the benefit of the shareholders,” he said.
In its financial results for the six months to June 30, 2022, FMP reported a profit of ZWL$25bn from a ZWL$2bn loss reporported in the prior comparative period.
The improved performance was on the back of the company’s fair value adjustment of investment properties which soared to ZWL$29.7bn in the period under review.
Revenue increased by 25% in inflation-adjusted terms to ZWL$746.3m in the period up from ZWL$595.5m in the previous comparable period with rental income as the primary source of revenue.
The collection rate increased to 87% from 82% during the period as management continued to engage tenants in timely rental payments.
The group spent a total of ZWL$88.8m on maintenance and improvements during the period under review.
As a result, the property portfolio was valued at ZWL$78bn at the end of June, reflecting a 254% increase from ZWL$22bn reported in the prior comparative period, driven by an increase in rentals in line with the inflationary environment.
In the outlook, the group is anticipating a highly uncertain business environment.
Moyo said FMP will continue to explore pragmatic strategies to grow the shareholder value including investing in high-yielding properties which will hedge the company against inflation and exchange rate risks.
He also said the company will maintain high occupancy levels on the back of effective client relationship management, provision of quality and safe product through on-going property refurbishment, maintenance and upgrades will remain a key focus area in the outlook.
