Property industry buoyant
…..as demand outweighs supply
BUSINESS REPORTER
Tigere Property Fund, a publicly traded Real Estate Investment Trust (REIT), has stated that the demand for property in Zimbabwe now outweighs supply, primarily because many investors view land and property assets as safe havens.
Tigere is an affiliate of Terrace Africa Asset Management.
Brett Abrahamse, the managing director of Terence Africa, attested to the strong demand in the real estate market.
“The property market remained buoyant with demand outweighing supply, resulting in stability in values across all sub-segments,” Abrahamse said.
He added: “Investors continue to view land and property as safe-haven assets owing to their value preserving and forex-earning characteristics.”
According to Abrahamse, the company’s occupancy level remained at 100% at both Highland Park Phase one and Chinamano Corner in the capital Harare.
He stated that Highland Park should further grow its revenue with the provision of additional parking allocation, a project that is actively pursued for implementation during this quarter.
In its financial results for the six months to June 30, 2024, Tigere reported a drop in profit after tax to US$528 862 from US$567 392 reported in the prior comparative period.
Total income for Tigere also fell 12% to US$769 885 in the period under review from US$861 949 in the same period last year.
According to Abrahamse, approximately 91% of revenue collections were denominated in United States dollars, reflecting a 72% increase from what was collected in the prior comparative period.
He said investment in property closed the period under review 0.1% higher at US$22,381,883, reflective of the enhancement works completed at Highland Park Phase 1.
Abrahamse said the fund did not receive any loans during the period, thus maintaining its debt-free policy and the current ratio improved slightly to 1.42x compared to 1.40x during the prior comparative period, indicative of good liquidity and supplier management.
