Property market remains subdued

In a statement accompanying its financial results for the half-year ending 30 June 2012, the company said commercial and industrial property sectors continued to be adversely affected by the non-existence of traditional mortgage lending facilities.

This was due to the continued liquidity constraints in the local banking sector.

“The property market remained subdued with property transactions being recorded in the lower and medium-end of the residential sector driven by employer-assisted schemes as the only available mortgage finance with an average tenure of 10 years,” said the company, which is a subsidiary of Afre Corporation.

“The commercial and industrial property sectors continue to be adversely affected by the non-existence of traditional mortgage lending facilities . . . . In respect of the office and industrial property sectors, limited investment opportunities exist in suburban office parks and warehouse-type industrial properties.”

The company reported that in the first six months of the year, its rental income climbed 8,9 percent to $4,22 million due to high rate of success in concluding rent reviews.

It said contribution from the recently completed George Square Shopping Centre in Harare was expected in the second half of the year.

Pearl Properties said as part of its ongoing programme aimed at enhancing rental income performance for existing properties, Afre Corporation was focusing on refurbishing warehouses in Msasa light industrial area in Harare.

During the period under review, the group’s financial position grew by 3 percent to $169,3 million from the December 2011 position due to appreciation in value of investments held and new investments from cash generated from respective business units.

On the outlook, Afre Corporation said the resurgence of business confidence was necessary to ensure a stable operating environment that would improve the economic recovery of the country.

“The group remains optimistic that there will be continued improvement in the economic environment and it is poised to participate in the economic generation.”