25 April 2019

Zimbabwe: First Mutual Properties Acquires RTGs$2 Million Worth Properties

Real estate giant, Mutual Properties (FMP) has acquired RTGS$ 2 million worth properties as the group remains focused to boost its immovable assets portfolio going forward.

The entity's chairman, Elisha Moyo revealed the details on the acquisition which have stabilised the group's immovable assets portfolio.

"In line with the Group's strategy to grow the property portfolio, acquisitions valued at RTGS$2 million were completed in 2018.

"The property sales market for commercial assets remained dry as few players were willing to sell their strategic assets given the threat posed by inflationary pressures on monetary assets and the group will continue to acquire prime located assets," he said in a statement.

Moyo said that rental incomes increased by 9 percent to US$8 million driven by new lettings with occupancy levels improving by 5 percent and an increase in turnover rentals at retail space.

Property expenses were at US$2 million, up 25 percent for the year driven by investment in maintenance programmes to improve the quality of space aimed at attracting new tenants and retaining existing ones.

Net property income marginally fell by 2 percent due to ongoing investment and in maintaining the infrastructure while administration expenses rose by 28 percent due to cost inflation.

Moyo revealed that an independent property valuation conducted by Knight Frank Zimbabwe as at December 31 2018 valued the property portfolio at US$146 million, registering a 6 percent gain on the prior year, on a market value basis.

"The marginal gain was realised in the retail and residential sectors and the group's strategic land bank also appreciated in value. In the face of a strategic broader macroeconomic environment the Group still recorded positive results for the year propelled by the resilient diversified property portfolio, posting a 139 percent increase in profit after tax," Moyo added.

First Mutual Properties is a real estate company that creates value through the development and management of properties in major towns of Zimbabwe.

It is a Zimbabwean stock exchange listed property company investing in prime properties in the major towns and cities of Zimbabwe. Our portfolio comprises about 117 250 square metres of lettable space made up of office parks, retail shops, commercial and industrial space.

The company owns 41 built properties across the major cities and towns of the country. These include office parks, retail space, and high-rise commercial buildings in central business districts, industrial warehouse space and suburban shops.

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