Zebb Chakawa 
TIGERE Property Fund (Tigere) says the demand for value-preserving assets combined with exchange rate volatility has triggered an upward shift in pricing across the real estate value chain.
Tigere is a real estate investment trust (REIT) owned by the asset management firm Terrace Africa. It became the country’s first ever publicly listed REIT on the Zimbabwe Stock Exchange (ZSE) in November 2022.
Due to disparities between the official and parallel exchange rate, suppliers of construction materials have been practicing forward pricing leading to significant cost pressures on property owners and developers.
In a trading update for the third quarter ended September 30, 2024, Tigere highlighted that while there is a vibrance in the real estate sector with many new projects in planning and development, the demand and supply metrices shifted in favour of the tenant.
“We believe that well-located, quality assets will retain their premium rental status. Prudent operating cost management will ultimately determine the pattern of yields generated across the sector,” Tigere said.
The REIT has an ambitious target to grow beyond US$100 million in assets under management within the next three years. In the latest update, Tigere said its acquisition of Highland Park Phase-two was approved by an extraordinary general meeting of unitholders held on 29 August 2024, and income benefits accruing from the purchased asset began to take effect in September.
“The newly incorporated Phase-two asset will bolster the yield and diversify the underlying portfolio, providing increased dividends to unitholders,” the fund said.
During the period under review, occupancy at Highland Park Phase-one and Chinamano Corner remained at 100 percent.
“August saw record turnovers at Highland Park Shopping Centre with most tenants surpassing their December 2023 turnover levels. This was owing to school holidays and a five-weekend month which included the Heroes Holiday,” Tigere said.
According to Tigere, the devaluation of the Zimbabwe Gold at the tail-end of the quarter was well received by retailers and the fund foresees a recovery in the main anchor’s sales volumes during the fourth quarter.
The fund further noted that as the festive season approaches, an uplift in foot traffic at the food and beverage section of the mall is firmly anticipated- which should provide a decent turnover rental boost to earnings.
