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Dr Munyeza

Nelson Gahadza Business Correspondent
African Sun occupancy currently stands at 61 percent for the peak season compared to 51 percent same period last year buoyed mainly by major conferences happening at the Victoria Falls’ properties. Chief executive Shingi Munyeza said the group was now on its peak period and has registered 10 percent average monthly increase in turnover from June.

He said the international market growth has significantly contributed to the growth matrix, with international arrivals increasing 15 percent on last year’s level.

“The local market remains depressed and is 5 percent down on last year,” he said.
Mr Munyeza said the group has completed the capital intensive refurbishments at some of the properties and is now carrying out routine refurbishments.

“We are going to carry out the routine refurbishments on our six big hotels and this will be financed through internal resources,” he said.
In his first quarter update, Mr Munyeza noted the group will achieve a slight increase in turnover in 2014 buoyed by growth in the contribution of international markets.

He however said domestic contribution will shrink to 55 percent from 61 percent owing to the current depressed economy.
The debt restructuring process spurred by the disposal of the group’s investment in Dawn Properties will be complete by September this year as the transactions are currently awaiting regulatory approvals.

“We have done most of the processes and what is left is some regulatory approvals which we expect will be complete by September,” he said.
Afsun embarked on a two phased disposal of its investment in Dawn Properties with the first phase raising about $4.2 million from a 12 percent stake.

Stage two involves the disposal of the remaining 16.54 percent and is earmarked to raise $5,77 million to repay short term debt.
After completion of the two stages gearing will be down to 34 percent from 53 percent while short term debt would be at $4.22 million from $10 million.