Solar power in line with ESG requirements a major priority for FMP

First Mutual Properties (FMP) says it will continue to conduct its operations in a sustainable manner, aligning with the principles of environmental, social and governance (ESG) requirements.

Group chairman, Elisha Moyo, in a statement of financials for the half year to June 30, 2024, said solar power will be prioritised for all new developments and upgrades.

“The new office block development at Arundel Office Park, will incorporate a solar plant to reduce the carbon footprint of the property portfolio.

“Further, management is promoting energy efficiency, inclusive facilities and implementing waste management initiatives,” he said.

He added that the governance structures around ESGs are also being enhanced to increase equality in the workplace through equal opportunities and representation as well as increased transparency.

Moyo said during the period under review, the business identified an orphanage in the community to which a donation of key basic products was made.

“The business will continue offering support going forward,” he said.

In terms of property development, Moyo said the group has strategically positioned itself to generate shareholder value by pursuing various projects at varying execution stages.

He said the group’s flagship project is the Arundel Office Park extension, whose scope involves building a double-story office block with a basement, providing a lettable area of 2,616.5 square meters, which is underway.

“Significant progress has been made on the project, and it is nearing completion,” he said.

He noted that the group is a co-investor and project manager in constructing a 388-bed student accommodation building near the Chinhoyi University of Technology.

“The project is at an advanced stage of fitting furniture and biometric security features, with completion expected in August 2024,” said Moyo.

In Zvishavane, he noted that the group is also a co-investor and project manager in the development of mixed-use duplex clusters, three- to four-story apartments, and student hostels, with the proposed designs having been approved by Zvishavane Town Council.

He said the project is in three phases, with phase A, comprising six duplex flats and 20 blocks of double and triple-story flats, already underway and completion is targeted for the 30th of September 2024.

Commenting on the property market, Moyo said the supply of space in the Central Business District (CBD) office and urban retail sectors, was relatively high, as this was driven by increased voids and the migration towards office parks and suburban retail and residential sites.

He said most tenants continued to pay rentals in United States dollars; however, in line with the country’s laws, most tenants paid operating costs using the local currency, which depressed the real value of utility fees and other operating income for the property sector in general.

“The market has seen an increase in the development of residential stands, cluster houses and high-rise flats.

“Furthermore, investors were focused on owner-occupied office park-style buildings and the conversion of residential properties into offices in the suburbs surrounding CBDs and on major arterial routes,” said Moyo.

However, he said despite the gap for supporting infrastructure, the growth in the development of industrial and warehousing properties in the country remained firm.

In the period under review, the group’s net property income stood at US$2,378,662, while the revenue amounted to US$4,342,779, largely anchored by rental income.

The group’s occupancy level averaged 89 percent for the period under review. Moyo said management continued to engage the tenants for timeous rental payments.

He said for the half-year, the collection rate achieved was 56 percent. Moyo added that the company is committed to providing its tenants with a quality and safe product, and to this end, US$412,169 was spent on maintenance in the first half of the year.-ebsinessweekl