HARARE, June 28 (The Source) – Zimre Property Investments (ZPI) on Tuesday reported a 15 percent increase in revenue to $2, 4 million in the five months May, driven by a 58 percent surge in stand sales.
Chief executive Edison Muvingi told an annual general meeting that stand sales had gone up 58 percent following increased interest in its Zimre Park development near Ruwa.
The Zimre project has 229 stands averaging 800 square metres on 60 hectares selling at $28 per square meter. The project was 80 percent complete with a delivery date set for July. Sales from the stands have so far reached $800,000 since last December.
Rental income was down nine percent to $1,3 million with the rent collection ratio at 76 percent. Voids grew from 22 percent to 24 percent this year.
“Rental income is likely to continue on a decline unless there is a significant structural shift in this economy,” said Muvingi.
The CEO said the company would diversify its commercial property to include office parks and other developments out of town.
“We have secured some two hectares of land along Borrowdale and our plan is to build 5 or so self-contained units there,” he said.
He later told The Source that the group was looking to diversify income streams in view of falling rentals, its primary source of income.
“We are looking at developing a strategy that bring income over 10 years by widening our income streams,” he said.
In addition to the Zimre Park project, the group was also developing a high density project at Snake Park along Bulawayo Road while several projects were at various stages of completion including Rhodene in Masvingo and Parklands in Bulawayo.