ZIMRE Property Investments Ltd (ZPI) is seeking the Harare City Council approval to build four sample houses at its US$2,5 million Tynwald high-density residential development site, MD Edson Muvingi said.
Muvingi told businessdigest the property firm was awaiting council’s response and would commence construction of the houses at four of the 288 stands, whose average size is 200 square metres.
“We want to build the units urgently, but we just have to agree with council and get a certificate of compliance first,” said Muvingi during a tour of the site.
“We have already finished servicing the stands, the roads are complete. One can buy a stand and start building because the drainage systems are ready and water is there at every stand,” he said.
The sample units will be three bed roomed and valued around US$25 000, excluding the land costs of US$10 000.
“We are approaching this with the view that high density does not mean low income, so the houses will have roof tiles and everything,” added Muvingi.
The company intends to start planting trees in the area and invest in solar panels in line with green practices.
So far, Muvingi said, ZPI had sold 150 out of the 288 stands.
The balance, including a church stand and commercial space, should be cleared soon as demand was said to be high.
“We want to build food courts because we feel the roundabout is a strategic location for people travelling along the Bulawayo highway to stop for refuelling or fast food,” said Muvingi.
“A lot of companies, including the big players in the fast food game, are interested in the space,” he added.
During the company’s analysts briefing for the full year to December 2012, Muvingi said the Tynwald project was one of similar projects in the pipeline, which were expected to significantly contribute to the company’s revenue.
Muvingi said the project would generate an estimated US$3,5 million, with estimated return on investment of 40%.
While ZPI’s Tynwald project was a success, its proposed low-density cluster home project in the Marlborough area could be revisited after the local authority raised some concerns.
Talks are still ongoing with council for a feasible solution. ZPI plans to develop 80 cluster homes, known as Adlyn, in the western residential suburb. However, council approved 40 out of 80 proposed units, making the project unviable for ZPI.
In the period to December 2012, ZPI’s after tax profit after revaluation was US$6,4 million, from US$7,5 million in the prior year.Revenue grew 32% to US$5,2 million, driven by rental income, which contributed 70%.
Total portfolio rentals for the year rose to US$3,81 million from US$3,03 million. The sale of serviced stands in Bulawayo and Masvingo also contributed 24% to the topline. The ongoing disposal of stands in Zimre Park Masvingo had to date generated US $2,36 million.
Administration costs, however, increased by 34% to $2,3 million during the period under review. Operating profit grew by 18% to $1,97 million.
Basic earnings per share reduced to 0.38 cents from 0,44 cents and the board recommended a final dividend of 0,023 (2011:0,019) cents per share payable by the last day of April.