daniel chigunwe
Oliver Kazunga
ZECO Holdings’ real estate business recorded a 30,77 percent decrease in shop occupancy rate in the third quarter ended September 30, 2024 compared to 48,14 percent in the corresponding period.
The firm, which is owned by flamboyant Harare-based businessman, Philip Chiyangwa, is transforming from a “rolling stock” business to a residential property development entity.
Recently, the firm’s independent auditors raised concerns over ZECO’s ability to operate as a going concern — however, management believes the property development sector holds more promise than the company’s previous business.
Therefore, management believes ZECO’s transition would pay off soon.
In an update to shareholders, the group said it anticipates the occupancy to increase in the near future as marketing activities and renovations are currently being rolled out.
“On the real estate business, the shop occupancy rate during this time was 30,77 percent down from 48,14 percent in the same period last year.
“We expect the occupancy to increase in the near future as we roll out marketing activities and enhance current renovations,” it said.
ZECO said its revenue in the period under review was moderate at ZiG941 913 while the previous year’s third quarter revenue was ZiG621 867.
“In future, the group’s performance will be heavily influenced by the economic climate, which has an impact on operating and production expenses.
“However, we anticipate more income from increased office space as well, which will improve working capital,” said the entity.
Administration expenses stood at 15,24 percent and property expenses at 8,24 percent for the quarter.
In the outlook, ZECO anticipates tight monetary conditions to persist on the back of measures introduced by authorities with an improvement in economic conditions during the last quarter driven by rising commodity prices.
“Under these conditions, we expect new business and we will continue to positively innovate the competitive environment by pursuing new market segments,” said the firm.
Bongani Ndlovu