Chronicle Editor
Business Writer
FINANCIAL institutions and pension funds in Bulawayo have joined the small lettable shop craze by subdividing portions of their properties.
According to a latest council report, CBZ Holdings and NRZ Contributory Pension Fund have sought permission from Bulawayo City Council to establish lettable shops.
The NRZ Contributory Pension Fund has established 29 lettable Unit shops, which are now operating without council authority and the premises had been renovated without council authority.
Council has said a once-off regularisation fee of US$1 000 should apply for the grant of the permit. On the other hand, CBZ Holding is setting up 18 lettable unit shops and the premises are under renovations.
“Some aluminium frames had been erected on a portion of the building and they resembled partitions for lettable unit shops. There were some brick works being done at the front of the building for the establishment of a shop front,” council said.
However, councillors have raised concerns over the closure of big shops preferring to subdivide their premises into small lettable unit shops. Councillors felt that the location of lettable unit shops should be zoned.
They referred to Johannesburg in South Africa where lettable shops have been zoned along Small Street.
“Councillor, S Sithole feared that if there were no controls in the establishment of lettable unit shops the city would soon be turned into a growth point.
“Tenants in lettable unit shops paid high rentals to their landlords who in turn paid very little amounts to councils while others preferred to owe council monthly rentals,” reads part of the report.
“Councillor Moyo noted that a lettable unit shop building was charged US$250 by council. Tenants paid far more than this amount individually.”
Most buildings in the central business districts of cities and towns are now being converted into small cubicles, which are then leased out to interested occupants.
The model buttresses the growing trend of shopping malls whose sizes differ depending on the location.
The development is also creating good business for the construction sector and its supply chain through renovations and provision of building materials, which creates jobs.
On the other hand, the CBD office space has been facing challenges with voids increasing as businesses migrated to suburban offices or office parks that are cosier.
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