REVITUS focused on face-lifting properties
REVITUS says it remains focused on facelifting its real estate properties in the Central Business District (CBD) of Harare to guarantee sustainable returns for its investors.
The real investment trust (REIT), owned by the National Railways of Zimbabwe (NRZ) pension fund, plans include the conversion of Chester House from office space to approved residential accommodation.
Completion of this exercise is scheduled for the current quarter.
REVITUS key properties include Atlas House, Chester House and Electra House in Harare as well as Africa House and Pioneer House in Bulawayo.
This comes as real estate investments are increasingly becoming a reliable hedge for long-term value preservation and sustainable earnings in Zimbabwe, driven by heightened demand for residential and commercial real estate.
This is expected to be compounded by growth in the informal sector, with Small to Medium Enterprises (SMEs) driving increased demand for affordable working spaces.
Increased interest from international investors, expansion of the tourism sector, and Government initiatives aimed at providing affordable housing are all expected to boost retail estate performance.
“The REIT remains focused on the vision to revitalise CBD properties and provide improved sustainable returns to investors.
“The pilot project for the refurbishment of Chester House (Harare) is at an advanced stage with the final technical approvals for conversion from office use to licenced residential accommodation scheduled to be secured in the third quarter of 2024.
“Appointment of a reputable operator for Chester House is set to be concluded as groundwork for renovation works is also being finalised,” said Tendai Muzadzi, on behalf of the asset manager, Datvest.
During the first half of the year, REVITUS overall occupancy and yield ratios on the properties were suppressed due to eviction of tenants in preparation for renovation works, as well as the termination of non-performing leases.
However, performance metrics are expected to improve after renovations, as reputable tenants would be onboarded in the short to medium term.
In terms of performance, Revitus REIT outperformed its prior half-year profit budget by 36 percent from the existing portfolio of buildings pending revitalisation in pursuit of higher returns.
Profit for the half-year period stood at US$184 619 while gross rental income ended the period at US$432 124 as the occupancy ratio grew 39 percent ahead of the prior comparable period.
Net asset value for the period under review was US$21 064 047.
In line with the commitment to pay quarterly distributions, the REIT declared a second quarter dividend of US$48 134 translating to 0,0131 United States cents per unit for the quarter ended 30 June 2024.
Following the completion of renovations, the real estate investment trust’s (REIT) comprehensive performance indicators are anticipated to show enhancement.
This is primarily due to the imminent onboarding of esteemed tenants within the near to medium-term horizon.-herald
