12 - 26 January 2014 - The Observer
ZIMRE diversifies portfolio
mix which is skewed towards high rise
towers all of which are in the CBD, with
a distinct absence of office park space.
I addition, this is intended to somewhat
address the congestion and flight of tenants
from the CBD,” Zhou said.
In terms of desired mix ZPI want an
office park and certain measured assets with
a slightly higher ratio.
“We want to address the portfolio mix
problems and this is one way of dealing
with this. This also enables us to have an
office park in the portfolio, an asset which
has been missing,” Zhou said.
The Borrowdale development would
offer ZPI opportunities to relocate to
offices outside the CBD and also brings in
value to the portfolio.
“The intention is that now that the land
has been secured, we go into designs which,
at the appropriate times, will be approved
by our internal Board structures and the
local authority,” he said.
Zhou said the major difficulty was of
funding but added the development was
not going to be done in the short-term as a
lot of factors would be at play, including the
performance of the economy which was a
critical factor.
Currently, the market provided very
short-term funding which was a handicap
on what one could do.
“But we will continue to seek funding
from regional institutions some of whom
we have already been in contact with
for a number of our developments,” he
said. Some of these are the PTA Bank
and Shelter Afrique. The latter is largely
focusing on human shelter and therefore
tends to support housing projects in various
countries.
To date funding has not yet been availed.
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• Continuing from Page 12
subdivided into approximately 150 stands
averaging 800 square metres in size for
onward selling to would-be home owners.
The site also has provision for such facilities
as schools, pre-schools, church and a
business centre.
The project is estimated to commence
about April or May 2014. In terms of the
law, we are required to open our proposals
for inspection by any interested parties at
the local authority offices. This process has
been undertaken and the inspection period
has lapsed, paving way for the development
to proceed. This is intended to allow for any
objections to the intended development.
ZPI will soon start on the actual designs
before implementation.
In the commercial sector, ZPI have
acquired a 2- hectare tract of land along
Borrowdale Road.
“The intention is to address the portfolio
In the end, Shelter Afrique could not release the
funding ZPI had applied for due to factors that had
nothing to do with the projects in question or the
credibility of ZPI as an entity. In fact Afrique was
impressed with the quality of projects ZPI was
undertaking on the basis of what they saw at the
Rhodene Masvingo project.
“We are excited and keen to see the Borrowdale
project take off and we want to see it culminate into
a development that will enhance our portfolio and
increase value for the shareholders,” Zhou said.
On what plans ZPI had with their CBD buildings,
Zhou said they would initially renovate some of the
buildings and find best use for them.
“We have looked at a number of options for
our First Street block, but have settled on initially
renovating and bring them up to a certain level,” he
said.
“The long-term plan is to pull them down
and put new structures, but this will depend on a
number of factors including the performance of
the national economy. Funding remains the single
most important factor for such developments to take
place. Currently, the funding products in the local
market are nowhere near what would be suitable for
developments of this nature. We don’t want to put
up the wrong types of assets in the wrong places and
find no takers for them. So this has to be a properly
evaluated decision.”
He said while one could not guess what the Harare
City Council’s new and expanded boundaries would
bring, the move would most probably see the CBD
losing its lustre with people moving to the suburbs,
an exact replica of the situation in South Africa.
ZPI’s property portfolio is currently valued at
about $50 million. It is one of four listed property
companies; the others are Dawn Properties, Mash
Holdings and Pearl.
In 2013 ZPI was voted the 8th best performer on
the Zimbabwe Stock Exchange.■
• Continuing from Page 3
continues to deteriorate and requires a character like
Gono given his experience in managing the previous
crisis,” he added.
Gono was the RBZ governor for the past decade
when Zimbabwe experienced an agonising economic
meltdown forcing him to implement unorthodox
economic solutions that kept Mugabe’s government
in power despite rising anger and instability during
that period.
Another analyst Sydney Masamvu concurred with
Mukonza that a cabinet reshuffle is imminent.
Masamvu said: “It’s inconceivable that Mugabe
and Zanu PF will allow a person of Gono’s calibre
to remain a backbencher at this moment of crisis.
Gono is likely to be appointed to cabinet thereby
necessitating a mini reshuffle.”
Herald columnist Nathaniel Manheru widely
believed to be Mugabe’s spokesperson George
Charamba on Saturday further stoked the speculation
with his public censure of Chinamasa and Bimha in
his column.
On Bimha, Manheru wrote: “Why, too, even your
ministerial name is a mistake at birth mistake that
ruins all that follows. Circumstantially, you have
become a minister of Trade, better still Imports,
Sir. And you are doing a very bad job because your
imports are evading banks and Zimra, leaving this
economy anemic.”
Manheru was not yet done and tore into Chinamasa
too. He scathingly wrote: “Himself a lawyer,
Chinamasa perplexingly allows anger to outrun
discretion. He asks the organisers why they invite
people like Robertson to forums such as this! That
was fatal, and a bad guy won, thanks to this human
propensity for pity, for identifying with the supposed
weak, the underdog.”
It remains to be seen what happens next but the
dice has been cast and time will tell. - Radio VOP