Zimre's Bulawayo $10m projects to begin soon

ZIMRE Property Investments Limited has set aside about $20 million for the development of its construction projects in Bulawayo and Victoria Falls that are expected to begin soon.

The projects comprise a shopping mall in Victoria Falls at an estimated cost of $10 million as well as two housing development projects in Bulawayo estimated to cost $9.4 million.

In a statement accompanying its financial results for the six months ended June 30, 2017, Zimre Property Investments Limited said:

"Acquisition of the strategic piece of land is complete and construction of the shopping mall is expected to commence shortly. The project, estimated to cost $10 million, will comprise a 5 000 square metre shopping centre anchored by one of the major retail chains."

It said the Bulawayo projects would involve the construction and development of Nicoz House at the corner of Fort Street and 8th Avenue, into a student accommodation facility and the building of five blocks of student hostels in Selborne Park.

The Selborne Park project is expected to offer 900 beds while the Nicoz House refurbishment project will create about 190 beds.

Last year, the property developer indicated that it had completed developing the Zimre Park Extension project in Harare with some of those who bought the stands and paid 50 percent of the purchase price having begun constructing their units.

"Disposal of the stands is progressing well although slower than had been anticipated. Purchasers who paid 50 percent of the purchase price have begun constructing their units," said Zimre, adding that servicing of Merwede housing project also in Harare was expected to soon as the contractor has been engaged.

"This (Merwede) project is located in the Snake Park Suburb, off the Harare-Bulawayo highway and comprises 128 residential stands averaging 200 square metres each.

"The estimated cost of the project is $0.65 million," it said.

During the period under review, total revenue for the company declined by seven percent to $2.57 million from $2.76 million achieved during the same period last year.

Projects income for the period grew by three percent from $1.08 million in the previous year to $1.11 million.

On the outlook, the property developer said demand for office space was expected to remain subdued.

"Consequently, rental rates and capital values are likely to underperform. Further diversification of both income and portfolio mix remain strategic," Zimre said.