adminEnacy Mapakame Business Reporter
Construction and sale of Dawn Properties’ upmarket residential development – Elizabeth Windsor Gardens in Harare – will be completed before year end.
Windsor Gardens, comprising 58 cluster homes will be sold at $97 000 per unit of two to three bedrooms.
Dawn chairman Mr Phibion Gwatidzo said property development remains one of the key focus areas for the group going forward.
“The property development unit took one of its first major steps with the development of the Elizabeth Windsor Gardens.
“The project is expected to be completed by the end of 2016, with all units being available for sale in the second half of 2016,” he said.
Meanwhile, the group is negotiating with Barclays Bank and Barclays Bank Pension Fund over the acquisition of Makasa Sun Limited- owners of Kingdom Hotel in Victoria Falls. Management at Dawn are optimistic property investment will continue to anchor the group and help unlock value.
In view of the prevailing depressed economic environment characterised by low liquidity, low consumer spend and deflationary pressures, analysts have identified property as a safe haven of investment and a caution against the volatile economic environment.
In the six months to June 2016, revenue was 18 percent weaker at $1,9 million from $2,2 million recorded during the same period in the prior year.
Dawn attributed the decline to revenue reduction in hotel rental business.
Of the achieved revenue, hotel leasing and property consultancy contributed 46 percent and 54 percent respectively.
The hotel lease rentals weakened 22 percent to $0,865 million from $1,1 million on economic challenges.
“The tourism continues to face a variety of challenges, which among others include the relatively weaker regional currencies, the cash shortages and the international perception of Zimbabwe’s socio-political environment being unstable,” said Mr Gwatidzo.
The group however returned to profitability posting an after tax profit of $ 480 000 from a loss position of $371 000 during the same period in the prior year.
Operating expenses declined 47 percent to $1,2 million on cost cutting measures.
In the period under review, Dawn embarked on a cost containment exercise which resulted in the group reducing its employees by 60 percent.
The group did not declare dividend.
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