First Mutual Properties co-construct student hostels in Zvishavane

Listed property firm — First Mutual Properties is involved in the construction of student accommodation hostels in Zvishavane with the proposed designs having been approved by Zvishavane Town Council as the firm is strategically positioning itself to generate shareholder value through the pursuit of a range of projects.

The contractor has commenced work on site with Phase A comprising the six Duplex Flats while other 20 blocks of Double and Triple Storey Flats are at trenching and brick footing levels, the firm noted in its financial results for the six months ended 30 June 2023.

“The business is a co-investor in the development of mixed-use duplex clusters, three to four storey flats and student hostels in Zvishavane with the proposed designs having been approved by Zvishavane Town Council,” it said.

The group is strategically positioning itself to generate shareholder value through the pursuit of a range of projects which are currently at varying stages of execution.

The Arundel Office Park extension, which entails the construction of a double storey office building with a basement and a lettable area of 2 616, 50 square metres is progressing well.

To date, the roof slab concreting is complete, the group said. Overall total project progress stands at 60 percent.

In Chinhoyi, the construction of a four-storey student accommodation building is also at an advanced stage with most of the structures now at second floor level.

“This project, which has a prescribed asset status, is being implemented in partnership with institutional investors,” it noted.

The group noted that as at 30 June 2023, an independent property valuation conducted by Knight Frank Zimbabwe valued the property portfolio at $853,85 billion compared to $109, 37 billion in the 2022 financial year.

The growth in property values of 679 percent was driven by the growth in rentals consistent with the inflationary environment

The Group’s inflation adjusted Net Property Income increased by 10 percent to $1,333 billion (HY 2022: $1,213 billion) together with growth in inflation adjusted revenue of 119 percent to $8,026 billion (HY 2022: $3,661 billion).

It noted that rental income remains the main source of revenue.

In historical terms, revenue grew by 657 percent from $486 million in June 2022 to $3,676 billion mainly due to timeous rental reviews and stable occupancy level averaged 88,10 percent in the period under review.

“Management continued to engage the tenants for timeous rental reviews and payments.

“This initiative resulted in the marginal drop on the number of defaulting tenants who in the past deliberately delayed to meet their lease obligations leading to improved collection rate at 87 percent (FY 2022: 86 percent).

The firm noted that to demonstrate its commitment to providing a quality and safe product (property) to its tenants, $404,2 million and $44.3 million were committed towards maintenance and improvements respectively during the period under review.-chronicle