Reduced stands sales weigh down ZPI

Published: 02 May 2019

ZIMRE Property Investments (ZPI) says it recorded a loss of $1,42 million during the year ended December 31, 2018, compared to a profit of $2,49 million in 2017 due to portfolio restructuring and reduction in stand sales.

Jean Maguranyanga, the company's chairperson, said the listed property developer will continue to restructure its portfolio in order to improve profitability.

"The company will focus on restructuring portfolio to maximise performance and returns and capitalise on opportunities created through various government reforms," she said.

During the year under review, ZPI's revenue declined 24 percent to $4,03 million from $5,27 million during prior year largely due to decline in rental income by 21 percent to $2,2 million from $2,78 million in 2017.

"In order to manage risk precipitated by market uncertainty, the Board took a deliberate decision to slow down project sales during the year under review," Maguranyanga said.

As a result, she said, stands sales were at $1,42 million in 2018, compared to $2,49 million during the previous year.

Maguranyanga said the company has significant stand stocks and stand sales performance is anticipated to be enhanced in future.

In terms of the Sawanga shopping mall project, she said the mall is nearing completion and scheduled to open for trading in May 2019.

"The mall will provide approximately 5 000 square metres of retail space. Letting of the space is 90 percent complete," she said.

The total completion cost of the project is in the region of $15 million.

Maguranyanga said the conversion and refurbishment of Nicoz House Bulawayo to student accommodation is complete and the facility has started accepting students.

"The facility is expected to be fully occupied by the second quarter of the year. Total cost of the refurbishment was $1,8 million including furniture and fittings," she said.
- dailynews

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