Zimbuild moves into agro-residential plots

Africa Moyo Property Reporter
GWERU-based property firm Zimbuild is eyeing investments into the agro-residential plots given the rise in demand for bigger residential places particularly by pensioners, a top official has said.

Zimbuild, which has already sunk almost $2,5 million in acquiring land for houses and civil works over the past five years, says it has delivered 3 500 low cost stands since formation. Dr Tinashe Manzungu, Zimbuild CEO, told The Herald Property yesterday that: “As a company, we are now eyeing agro-residential plots in Gweru because we realise people want some bigger spaces especially retirement places.

“When people retire, they don’t need small spaces but bigger ones, hence the emergence of the new proposed one hectare plots just on the periphery of Gweru.”

Dr Manzungu said there has been a surge in demand for both low cost stands and one hectare plots, particularly since March this year when the company diversified and set up a microfinance institution.

“We have witnessed a phenomenal rise in demand for our housing projects because our microfinance institution – Tinrue Financial Services – is coming in with mortgages for beneficiaries. You need to recall that mortgages offered by other financial institutions are relatively expensive and not many people are keen to take them up.

“So our microfinance is assisting low income earners to acquire properties, which are a must-have for anyone wanting a peaceful retirement,” said Dr Manzungu.

The microfinance institution, which was licensed by the Reserve Bank of Zimbabwe, offers mortgage finance to home-seekers. Tinrue Financial Services targets people mainly from the informal sector who are financially excluded by the mainstream financial services sector.

Before setting up its microfinance institution, Zimbuild had a tie-up with CBZ through which the latter provided insurance so that contributors do not lose their stands in the event of unforeseen circumstances causing them to default.

Tinrue Financial Services offers 15 year mortgages. Government has set a target of 313 000 housing units in its economic blueprint, the Zimbabwe Agenda for Sustainable Socio-Economic Transformation (2013-2018), and private developers are crucial to the achievement of the targets.

Zimbuild, a unit of Tinshel Properties, has five housing projects in Montrose, Highlands Park and Charlton Park in Gweru. The other projects are in Kwekwe and Kadoma. In Kadoma they have the Cherrybank high density project which will deliver 200 houses.

Dr Manzungu said: “We want to develop core houses for the masses and dispose them through Tinrue Financial Services, which will assist home-seekers secure mortgages at minimal interest rates of as low as 7,5 percent per annum.”

Dr Manzungu said they have tried their best to deliver houses and stands to the country’s citizens as is being advocated for by the country’s leadership, in line with the aspirations of Zim-Asset.

He said he was glad that despite the liquidity challenges in the country, Zimbuild has been well received by the local market, as evidenced by the trust bestowed on them by a group of Zimbabweans based in the Diaspora who teamed up and secured more over 100 housing units after consultations with the local authorities.

Dr Manzungu added that some big corporates in the Midlands have also secured houses for their employees through guaranteeing salary deductions. Property is a sought-after investment in an environment where instruments such as money and stock markets are unstable.

Many financial institutions including ZB Bank, POSB, FBC, Cabs and CBZ, are spreading their portfolios into property development as they seek to hedge their funds against inflation. CBZ has started housing projects in Victoria Falls and Nehosho in Gweru while FBC has the Masotsha Ndlovu and Glaudina housing projects in Harare.

Cabs’ housing project in Budiriro has had its mortgage terms consistently revised to stimulate uptake. NicozDiamond has also suspended selling its Hatfield Diamond Villas, preferring to rent them out until such a time the market is ready to pay better prices, the company said recently.