Property firm, Dawn Properties said it plans to undertake an $8 million housing project in medium density suburb of Marlborough in Harare as part of efforts to maximise the value of its land bank, an official said on Friday.Dawn Properties chief executive Justin Dowa told shareholders at the company’s annual general meeting that the project will consist of 72 two and three bedroomed garden flats.

“This is an exciting lifestyle development in this location which has considerable future potential,” he said.

“The costs are being redefined to ensure financial viability but the estimated value of the project is $8 million.”

Mr Dowa said the Zimbabwe Stock Exchange listed firm was exploring various funding options for the project, whose implementation has been held up by delays in the zoning of the land by the Harare City Council.

Zimbabwe is currently facing a serious housing backlog estimated at over one million units.

Mr Dowa said Dawn Properties had recorded a three percent drop in revenue in the first four months of its financial year from April to July and was pinning hopes on a surge in meetings and conferences at its hotel properties to better its performance.

Dawn Properties owns a number of hotels, such as Holiday Inn Express in Beitbridge, Holiday Inn Mutare; Crowne Plaza in Harare and Carribea Bay in Kariba, most of which are rented by tourism and leisure group, African Sun.

“In light of constrained revenue generation, rigorous cost controls will continue to be the focus to protect profitability,” he said.

In the four months, rent income was down four percent due to a decline in domestic demand while occupancies at the hotels were ‘soft.’

“The situation is forecast to take a turn for the better as we move into the high season,” Mr Dowa said, adding an anticipated jump in activities especially at resort hotels would enhance performance.

He said the group had put on hold plans to dispose of some of its hotels as the “timing is not right.”

“Only Brondesbury Park Hotel (in Rusape) is still on the market as its immediate prospects are limited in terms of the company’s strategy,” he said.

The disposals were mooted as part of initiatives to rationalise the company’s hotel portfolio and diversify risk away from single sector exposure. —  New Ziana.

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