ZIMRE Property Investments Limited is pleased with the rate at which they are recovering the returns from its two projects in Harare and Masvingo. The company has to date sold a total of 303 stands in its Zimre Park, Masvingo and the Tynwald projects in Harare.
The property firm has sold more than half of its stands in Tynwald.
“We have sold 151 stands worth US$1,64 million and the rate of recovery is pleasing to us. The Tynwald project is well on course as we have finished the inspection part.
“The Harare City Council gave us a partial compliance certificate which we have been circulating for signatures. We are expecting that by the end of this month we will be given the final certificate,” said an official who requested anonymity.
Zimre is also planning to build a shopping centre next year near its Tynwald project.
“The shopping centre is a project we intend to build. We are looking at the catchment, the traffic flow
around that area. We feel it is a good project,” said the official.
The Masvingo project, which has 338 stands in Rhodene, an upmarket residential suburb in the city, has sold a total of 153 stands worth US$2,69 million.
“In terms of land this represents 43 percent of the entire project. To date, nearly US$5 million of the project cost has been recovered, which translates to 54 percent which is commendable.
“However, the sales are progressing slowly due to the general downturn of the economy and lack of mortgage finance in particular,” he said.
Zimre finance manager Mr Nyasha Zhou said the issue of funding is coming up but could not divulge the names of the prospective investors.
“Prospective investors are coming with an interest to invest, unfortunately we cannot open up on the names of the investors.
“The issue is that the investors usually want to come when the project is at a profit sharing stage but some of these investors have shown interest in investing even at project stage,” he said.
On the issue of recapitalisation, Mr Zhou said: “We are crafting strategic deals with banks to finish our projects in Tynwald and we have also structured our credit facilities with three banks since our projects are centred on internal funding.”
Zimre will continue to access more strategic land banks where they will be focusing on the medium- to high-density areas.