adminEnacy Mapakame Business Reporter
Property developer Terrace Africa says it has a solid project pipeline planned to commence before the end of this year across the country, as the group seeks to contribute towards the transformation of Zimbabwe’s real estate sector.
The group is targeting mainly retail and commercial segments. This comes as there is strong demand for retail space both in the central business district (CBD) and suburban space driven mainly by the growing number of small to medium enterprises (SMEs).
Bigger retail groups and premium brands are more skewed towards shopping centres in suburban areas while office parks are preferred by non-retail businesses.
One of the projects is the development of a world-class shopping centre at the Show Grounds area, along the Harare – Bulawayo highway.
Terrace Africa managing director Mr Brett Abrahamse said opportunities were vast for retail and commercial segments and the Showgrounds project will boast world-class facilities.
“We have quite an exciting pipeline as Terrace Africa, not all of them will be going to the REITs, but we are working on exciting projects.
“We think the Showgrounds is going to be an exciting shopping centre with all facilities, conveniently located, close to town and is going to have international standards.
“It will be one of the best shopping centres in Zimbabwe,” he said recently on the sidelines of the Tigere REIT launch in Harare.
According to the group, one of the projects will be launched before year-end in Madokero, Harare while another is expected to commence at the beginning of next year in Zimre Park, also in the capital city.
Mr Abrahamse said there were vast opportunities not only in big cities like Harare and Bulawayo but smaller towns that are driven by agriculture and mining such as Marondera where they have already made investments.
“We believe the cities are going to be needing quality retail and commercial offerings. We are also looking at smaller towns as well that are driven by mining and agriculture, there is opportunity for them to have exciting shopping centres.
“We have done one in Marondera and are doing well, we are fully let there,” he said adding the group’s focus was on providing offerings that meet current market needs.
Terrace Africa, recently launched its Real Estate Investment Trust (REIT) –Tigere – the company prepares to list the real estate property-based investment security on the Zimbabwe Stock Exchange (ZSE).
The Tigere REIT has two properties, namely Highland Park Mall, which opened its first phase in June this year and has 27 retail shops on a lettable area of over 6 000 square metres. It is anchored by tenants that include Pick n Pay, Puma Energy and Simbisa Brands.
The other property is the Chinamano Corner which has 13 shops and offices in addition to a Simbisa outlet.
Experts in real estate say the sector still remains one of the most lucrative investment options in Zimbabwe offering real returns, despite the obtaining economic headwinds.
Recently, a new trend has emerged in the capital where there is a growing shift from the central CBD towards office parks and suburban offices as businesses leave the CBD space due to various reasons among them to dodge pollution, poor and dilapidated infrastructure which can no longer cope with the growing population as well as high traffic congestion.
Another trend is where developments are done along major roads such as the Highland Park Mall along ED Mnangagwa Road (formerly Enterprise Road), Airport Road, Lomagundi Road and Bulawayo Road.
Online Reporter