adminOliver Kazunga Bulawayo Bureau
ZIMRE Property Investments (ZPI) has said its US$13 million Sawanga Shopping Mall in Victoria Falls, whose construction was completed recently, has already attracted tenants, with the occupancy rate at more than 95 percent.
The mall was built on a 1 500-hectare piece of land, and now offers 24 shops, a car park, restaurants and office space, among other structures.
In an interview yesterday, ZPI managing director Mr Edson Muvingi said the mall started operating recently and was expected to be officially opened soon.
“We are now talking of the mall’s official opening soon,” he said, without revealing further details.
The mall is one of ZPI’s major projects that the property concern targeted to operationalise this year.
In its financial results for the half year ended June 30, 2019, Zimre said the mall contributed significantly to rental income.
Sawanga Mall partially opened in April 2019 and improved inflows from the Bulawayo student accommodation facility that has increased occupancy levels to above 65 percent.
Collection for the period averaged 124 percent and this saw a reduction in overall portfolio debtors by 74 percent to $0,9 million from $1,7 million by close of the period.
Average vacancy rates marginally declined from 28 percent to 27 percent over the comparative periods, with Gweru industrial, Bulawayo Central Business District offices and Harare Kopje area offices recording the highest void rates. Total administration costs went up 68 percent to $1,81 million and ZPI initiated cost control measures throughout the reporting period, which saw cost escalations limited to 41 percent.
At $181 million, total assets were 235 percent above same period last year.
In the outlook, ZPI remains positive about the future of real estate in the country. The property sector as a whole is expected to remain subdued on the back of high costs and weak demand.
Online Reporter