adminEnacy Mapakame Business Reporter
Listed property firm, Dawn Properties, is expecting an increase in profitability for this financial year spurred by property development and sales of its upmarket development, the Elizabeth Windsor Gardens.
In a trading update at the firm’s annual general meeting last week, Dawn also indicated rentals from its main tenant — African Sun group — were anticipated to increase on the back of good performance from the sector.
“The group’s profitability for the remainder of the year is expected to be driven by property development as we start recognising sales from the Elizabeth Windsor development, good performance from the timeshare rentals and an increase in rentals from African Sun across all our properties,” said Dawn.
Elizabeth Windsor Gardens, the group’s first residential development comprises 58 cluster homes built in Harare’s Malborough area.
In view of the prevailing challenging economic environment characterised by low liquidity and low consumer spending, analysts have identified property as a safe haven of investment and a cushion against the volatile economic environment.
Meanwhile, Dawn’s revenue for the five months to May 2018, increased 27 percent to $2,2 million compared to same period last year.
Property income from hotels and timeshares was 33 percent higher than the same period last year on the back of good performance in the hospitality industry.
Revenue from property consultancy amounted to $951 800, which was 21 percent higher than the same period last year.
The positive performance was attributed to business process re-engineering in both the group’s property management business and valuation advisory services.
Timeshare revenue continued to increase with focus on improving the product visibility in the market through increased marketing efforts.
Dawn undertook some hotel improvement plan.
At Amber Hotel in Mutare, the group has undertaken to replace guest elevators.
The project should be completed by end of July 2018.
Indications are that tenant, African Sun, is also refurbishing rooms for the Holiday Inn brand to improve their ambience and appeal to customers.
Dawn is upbeat of maintaining the positive growth trajectory on the back of good performance in the economy, which will cascade to hospitality and tourism industry.
“We have seen good business momentum through the opening months of 2018.
While the operating landscape continues to shift, we continue to be optimistic of the medium to long term prospects of the company.
“In the short term, priority will be to consolidate the existing performance while continuing to explore new areas of growth in both hospitality assets and residential property development,” said Dawn.
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