Omega Ukama 
FIRST Mutual Properties (FMP) says it will align its products with the changing requirements of the market to survive current and future uncertainties.
Elisha Moyo, the listed real estate firm’s chairman
Zimbabwe’s economic outlook remains uncertain due to various factors and the further potential adverse effects of the C ovid-19 pandemic, all of which will affect demand for various real estate products.
“In the short term the focus is on driving rental growth, managing operating and maintenance costs, all to ensure the going concern and sustainability of the property portfolio… with changing local and global and real estate trends, the group will target investment opportunities in non-traditional real estate asset classes and provide property services to third parties to further diversify income streams,” Elisha Moyo, FMP’s board chairman said last week in a statement accompanying the company’s results for the year ended December 31, 2019.
“In addition, in light of the changing socio-economic environment, the group will also focus on developing new products and tailoring existing stock to the changing requirements,” he added.
He said while the full economic impact of Covid-19 on the real estate sector remains uncertain, “long term behavioural changes will define market direction, as immediate reactions and changes may not be long term”.
“The ability to ensure real estate products are agile and adaptable is critical… the focus for property investors will be on determining the right balance between capital preservation and further strengthening the competitive differentiation of existing products”.
He said the novel coronavirus has accelerated the need to diversify revenue streams, pursuing digital strategies, and focusing on enhancing tenant experience with owners and operators collaborating to protect their ecosystem to remain a going concern.
In 2019, the Zimbabwean property market remained subdued, characterised by high levels of voids.
FMP, however, enjoyed a positive performance for the year with an increase in operating profit of 88 percent, which was realised on the back of improved occupancy levels and turnover rentals.
FMP’s investment property portfolio grew by 53 percent during the year driven by fair value gains, while rental income decreased by 12 percent $58,10 million due to the “foreign currency translations effect”.The company had new lettings, which improved its occupancy levels to 85,70 percent from 76,10 percent in the prior comparable period.
Meanwhile, FMP says it is at the pre-construction stage of the Arundel Office Park extension with formal appointments of the design team having been concluded.
“In preparation of the project, some pre-purchases of bulk materials have commenced… the construction work is set to commence in the second half of 2020,” Moyo said.
