Analysts put price tag on Dawn Properties


Shakeman Mugari

ANALYSTS have valued Dawn Properties Ltd at between $60-70 per share ahead of its listing on the Zimbabwe Stock Exchange after the successful demerger from Zimsun.
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This follows the completion of the documentation for the demerged company, which will become the first property vehicle on the stock exchange.


The company will list on the bourse on September 9.

A prospectus has also been sent to Zimsun shareholders ahead of an Extraordinary General Meeting to be held next Friday.


If the demerger is approved shareholders will receive Dawn shares in the ratio of one new Dawn Linked Unit for every one Zimsun share held at the record date.


According to the circular, Dawn will take over properties previously owned by Zimsun.


The properties dotted around Zimbabwe would be under three investment vehicles that are under Dawn, namely Gold Coast Properties, Laclede Investment and Calphine Investment. Express Holiday Inn (Beitbridge), Hwange Safari Lodge, Crowne Plaza, Caribbea Bay, Holiday Inn-Mutare, Troutbeck Inn and Elephant Hills will be under Gold Coast Properties.


Laclede Investments will own Great Zimbabwe Hotel while Calphine Investments will have Lake View Inn in Kariba.


Zimsun would retain Blue Swallow Lodges in Nyanga and Kingfisher Cabannas in Kariba.


Under the proposal Zimsun is unbundling 80,01 % of its shareholding in the new company and will retain the remaining 19,01% as collateral.

All properties are currently leased to Zimsun.


Zimsun chief executive officer Shingi Munyeza told analysts at a briefing that the transaction would not include properties in neighbouring countries.


Zimsun has other properties that would not be taken over by Dawn Properties.


“Due to the exchange regulations Dawn will not take over Zimsun Properties that are in other countries,” Munyeza said.


“We will therefore retain these properties. This applies to a country like Mozambique.”


Newly-appointed group chief executive for Dawn Properties Mike Manyika told analysts at a briefing that the company would lease properties on turnover basis.


Dawn will receive between 10-11 % of the turnover.

Manyika said the company would also venture into property development and was negotiating with prominent players.


“It is too early to divulge any more details but we can confirm that we are currently negotiating with some strategic partners,” said Manyika.


On future prospects he said he anticipates the share to hit $100 about two months after listing.


“It’s up to the market to decide the value but we are looking at $100 two months after the listing,” Manyika said. “We have a plan to diversify and venture into other areas.”