The Observer Issue 12 | Page 11

The Observer - 26 January 2014 - 11 Mash Holdings property investment at its best ZIMRE diversifies portfolio L isted property giant Zimre “Once we are certain that the involve putting up infrastructure Property Investments is tenant is no longer able to pay, such as roads and sewer and water diversifying its property certain processes, including legal reticulation. portfolio to balance its mix action, are initiated not only to To date, ZPI has undertaken and improve its revenue base. recover the amounts outstanding but development projects in Tynwald Finance director Nyasha Zhou said also the space. This also gives us an towards the end of 2012, Rhodene the obtaining liquidity crunch had hit opportunity to lease the same space in Masvingo which is a low-density the business hard, resulting in some and achieve better rates. But we have project, and Parklands in Bulawayo, of its leased space not performing to also discovered that the CBD is now which is medium-density. expectations. heavily congested and parking has All these three projects are “The times have been hard for become a major problem, making it currently selling. The Tynwald project the business,” Zhou said. “Income unattractive to prospective tenants. started selling in 2013 with an initial largely aligned to rentals has had “We have seen people opting to 150 stands being put on the market. serious problems in terms of ability move out and lease in suburbs or Market response was very good. The of tenants to pay, let alone maintain office parks. This flight of tenants has batch of 88 stands will be put on tenancy. resulted in an increase in void space,” the market once t