Property investment and developer,
The property market continued to experience low demand for space, with the CBD Office sector worst affected, while the retail and industrial segments of the market remained resilient with steady demand.
Net property income grew at a slower rate of 331 percent during the period due to reinvestment in repairs and maintenance, to improve space quality and accelerate leasing effort, the company said in its latest trading update.
Occupancy levels moved up by 2 percentage points to 89 percent from same period prior year levels, "mainly attributable to net lettings in the CBD office and retail sector," said
A total of ZWL 7.037 million was spent during the quarter on property maintenance, while the business remained focused on accelerating digital strategies and talent retention.
Investment properties at
The lockdown early in the year delayed rent review efforts, hindered collections and planned maintenance initiatives.
"Collections deteriorated during the period to 57% (
Going forward, the company expects rental yields to remain weak due to the slow nature of price discovery of rentals, coupled by limited upside on rentals due to excess supply of space, while recent revaluations of properties will apply pressure to any growth in yields.
The Group finalized a contract to implement a solar energy project at
The solar system is expected to be operational in third quarter of 2021.
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