Financial Gazette (Harare)
27 June 2009
Harare — AFRICA First ReNaissance Corporation (Afre)'s property arm, Pearl Properties Ltd, plans to invest in new retail properties, particularly shopping malls and industrial parks, in the country's key, high-traffic locations.
Nine years of relentless economic crisis have seen the stagnation in commercial property development creating new opportunities for private developers.
Sibusisiwe Ndhlovu, Afre's chief operating officer, said Pearl Properties' construction deal with TM Supermarkets showed its interest in the sector and therefore marked a crucial entry point for the firm. The company constructed TM West End, a state of the art shopping complex in Bulawayo, and handed over the property to the retail chain store at the end of March.
Said Ndlovu: "We believe that there is a lot of potential in that sector. It is a sector where we have strategic interest.
"Our goal from now own is to move into the sector through our property division."
Pearl Properties has also unveiled plans to move into the hospitality industry where it intends to build hotels as well as make strategic acquisitions in established operators.
The retail and hospitality sectors were among the first sectors to recover from Zimbabwe's economic crisis as operators started restocking and attract more visitors.
Long-term investments in the two sectors are therefore expected to unlock value for the shareholders of the Zimbabwe Stock Exc-hange-listed company as they still possess substantial potential for further growth.
During 2009, Ndhlovu said, Pearl Properties is expected to contribute significantly to group earnings in two ways.
Firstly, Afre has transferred the management of group properties to its property subsidiary and this will increase rental income, she said.
Secondly, Pearl Pro-perties increased its rentals at the beginning of the year from US$0,20 per square metre to about US$2 per square metre.
This adjustment is expected to boost the company's letting business.
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