The Observer Issue 18 | Page 13

The Observer - 23 March 2014 - 13 AfSun shareholders approve Dawn deal A HARARE frican Sun shareholders on Friday voted to dispose of nearly $6 million worth of Dawn Properties’ stock to Brainworks Capital, in a bid to reduce interest expenses. African Sun chairman Bekithemba Nkomo told shareholders at the company’s joint annual general meeting and extraordinary general meeting that the sale of 406,446,976 units to Lengrah Investments, representing 16,45 percent of Dawn, would ease the cost of borrowings. Chief executive Shingi Munyeza told shareholders that revenues for the five months to February were four percent down on the previous year due to lower occupancies. “This drop in revenue is mitigated by a one percent drop in operating expenses and interest cost savings of 30 percent. EBITDA is however ahead of budget but down from the same period last year,” he said. The interest cost savings were made following the first sale of Dawn stock worth $4,2 million last October. Revenue growth will be driven by conferencing and an increase in foreign arrivals, particularly from the United States and Europe as the local market continues to face liquidity constraints, Munyeza said, while arrivals from South Africa decreased during the period under review due to a weakening Rand which restricted travel. Amber Hotel in Accra, Ghana, would break even in May, buoyed by revenues which have been doubling every month since December last year, Munyeza said.■ Low occupancies lowered African Sun revenues for five months to February New industrial area north of Harare T here is a new light industrial suburb planned for Harare within easy access of the Northern, Eastern and Western suburbs. This new development will be a huge advantage for people seeking employment closer to home and also for more easy access for the Stock market closes week bearish T residents of the nearby suburbs. Speaking about the new development, Patrick Kennan of Kennan Properties says: “None of the land earmarked for this industry is suitable as a residential area because of its close proximity to a busy main road, the Pomona quarry and the city dump. For these reasons, the re-zoning of this area to a light industrial use is particularly appropriate, making good use of land that would otherwise lie unused.” Some industrial properties already exist on Harare Drive and some very significant buildings have already been erected. These are situated not far from the Alpes Rd intersection and adjacent to the area currently being used for the growing of instant lawns. In addition to this: A 1.73 hectare site on the North/West corner of Harare Drive and Alpes Rd has been re-zoned for light industrial purposes and sold by Kennan Properties for further development. On the North/East corner a 10 hectare site has been sub divided into 29 light industrial stands. The majority of the stands here have already been sold by Kennan Properties and internal roads and water reticulation networks are in the process of being installed. On land nearby but a little further up Alps Road, a further block of land is being sub-divided into 51 stands, again for light industrial purposes. The sales campaign for these stands is also being handled by Kennan Properties and will be launched later this year. “Demand for the stands has been high,” says Kennan, “and this has been clearly driven by the convenient location. “The majority of Harare’s industrial sites are to the South of the city and so easy access to these sites from Northern, Eastern and Western suburbs is difficult especially nowadays with more and more cars on our roads”■ Advertise in The Observer, Call 0772 964428, email: [email protected], facebook: TheObserverZim Greystone Park –US$350 000neg Ballantyne Park – US$320,000 Hatfield – US$115,000 4 beds, main ensuite, borehole, 2 lounges, staff quarters, 5 400sqm Call Busi 0779 406 980 5 beds,2 lounges,swimming pool, 5 000L water tank, borehole, 1 acre,walled and gated. Call Simon 0772 844 841 Solid 5 bedroomed house ,main en suite,walk in wardrobe built in cupboards, dining ,lounge, fitted kitchen , roomed cottage,4 800sqm Mrs Madziya Call 0773 586 402 Zimre Park, US$75,00 Avondale – US$130,000 Rolf Valley –US$280,000 Neat 3 bedroomed house, dining, lounge, sitting, walled and gated, 1 000sqm Call Lloyd 0773 399 501 Beautiful 4 bedroomed house, with fitted 4 beds, main ensuite, lounge, walled and gated, double cupboards, 2 lounges, dining, 2 toilets, lock-up garage. Call Innocent 0773 422 724 2 bathroom, staff quarters. Call Flora 0772 134 96