Mishma Chakanyuka, Staff Writer 
ZIMBABWE’S only exchange-traded Real Estate Investment Trust (REIT), Tigere Property Fund, reached 100 percent occupancy for the half year ended June 30, 2023, buoyed by an upsurge in demand for space at its assets.
The Terrace Africa Asset Management (Terrace) fund, which started trading on the Zimbabwe Stock Exchange at the beginning of December last year, said there is also a substantial waiting list of potential tenants for space at its assets.
“Highland Park and Chinamano Corner have experienced increased customer traffic during the period under review. New tenants, among them restaurants have opened for trade, underpinning the strong performance of the two assets,” the asset manager said in a statement accompanying the fund’s financial results.
“The surrounding areas continue to benefit from having high-quality retail shopping experiences. Tenant demand within most sub-sectors remains strong due to shortage of quality stock.” The asset manager highlighted that significant construction progress is being made on Highland Park Phase 2 and the project is expected to be completed in the fourth quarter of 2023.
The REIT declared a second quarter interim dividend of US$255 202 consisting of US$218 087 (being 0,03 US cents per unit) as well as an additional ZWL167 651 585 (being 23,30 Zimbabwe cents per unit) in respect of the quarter ended June 30, 2023. REITs are described as investment vehicles regulated under the Collective Investment Scheme Act.
In Zimbabwe, a REIT is obliged to pay a minimum of 80 percent of its distributable income to unit holders each financial year and are primed to support the property sector’s growth and provide funding for new infrastructure development projects.
Over the years, the property market has also remained one of the most lucrative investment options in Zimbabwe, offering real returns despite the prevailing economic headwinds in the country. According to Terrace, the property market in Zimbabwe continues to see transactional growth with the sale of existing stock and numerous developments taking place across the country.
“Steps to improve the regulatory environment for the property market are being taken by industry and government, which will make it easier for all investors to participate. “Increased demand for properties due to a growing population as well as outdated stock has also provided significant growth opportunities,” the fund manager said.
