Zimre Property Investments posted a loss after tax of $3 million for the year ended December 31, 2015 due to depressed revenue performance and an increase in expenses. Total revenue for the year declined four percent to $5,4 million from $5,7 million recorded in the previous year Despite pressure on rental rates and an increase in voids experienced during the period, rental income marginally declined by one percent to $3,5 million from $3,6 million in 2014.Projects income for the year amounted to $1,65 million down from $2 million achieved in 2014, a decline of 19 percent.
“The performances of project sales were negatively affected by the non-availability of new stand stocks, particularly in Harare. Total administration costs were $3 million compared to $2,9 million recorded in the previous year, a three percent increase,” said ZPI in a statement accompanying its financial results.
“Weak demand for leased space and real estate products in general contributed to ZPI’s rising voids and debtors, which negatively affected the firm’s revenues during the period under review.”
On projects, servicing of Zimre Park Ruwa project started in November 2015 and the project which comprises 238 stands has already begun selling.
The completion of the first phase comprising 71 stands is scheduled for March 2016 while the rest of the project is expected to be completed by end of June 2016.
The value of the project is $6 million.
ZIP said Zimre Park Masvingo continues to sell albeit at a slower pace. At year end, 88 stands were still unsold and these had a market value of $2,56 million.
The Tynwald project has been successfully completed and sold out.
ZPI said it has embarked on a number of new projects to ensure income diversification and also adopting several strategic initiatives to contain costs. ZPI chairman Mr Buzwani Mothobi said the property sector experienced weak demand for leased space and other real estate products during the period under review.
“The resulted in rising voids and debtors as well as falling revenue due to reduced uptake of leased space and falling rental rates,” he said.
Mr Mothobi said tenants continued to rationalize occupied space and demand for commercial offices and industrial premises remained weak as the market experienced excess supply, whilst uptake of retail space remained relatively stronger.