First Mutual’s Arundel project to start in Q 2

06 May, 2022 - 00:05 0 Views
First Mutual’s Arundel project to start in Q 2 Elisha Moyo

eBusiness Weekly

Enacy Mapakame

Listed property firm − First Mutual Properties (FMP) − is investing millions of dollars into various projects with its Arundel Office Park expansion project now progressing well and scheduled to commence construction during the second quarter of 2022.

According to the group, although still at pre-construction stage, the project has already been approved by the local authorities. Implementation of the project was slowed by the Covid 19.

Although the construction industry was given essential services status and therefore allowed to operate during the various stages of lockdowns, a number of projects across the country delayed as a result of supply chain disruptions due to lockdowns as the country implemented various levels of lockdowns since March 30, 2020.

FMP chairman, Elisha Moyo, said the property firm is at pre-construction stage with the design development of the architectural plans completed while the drawings and the Environmental Impact Assessment (EIA) Study prospectus is currently being considered by the relevant regulatory authority.

“The project is expected to go for tendering in Q1 2022,” he said in a performance update for the year to December 31, 2021.

This comes as demand for office park space has remained solid as compared to commercial CBD space that has been hit by voids as businesses downsized operations and adopted remote working in line with Covid 19 regulations.

According to the group, there is a range of construction projects being undertaken from commercial, retail to residential and industrial warehousing facilities.

The group commenced the development of a retail warehousing facility in Mbare, Harare. The property is being pre-let to Gain Cash and Carry on a long term lease in a syndicated project involving the property firm with a target equity participation at 47 percent valued at US$260 000 and some institutional investors.

Meanwhile, FMP recorded net property income after administration expenses grew 55 percent to $175,9 million for the year to December 31, 2021 against prior year.

This was driven by a 39 percent growth in revenue which closed the year at $594,75 million compared to $427,15 million recorded in the previous year.

Revenue growth was sustained by repricing of rentals and stable occupancy levels during the year under review. Average occupancy level was at 89,93 percent, slightly above the 89,67 percent recorded in the comparable year.

As a result of effective tenant relationship management strategy, FMP enjoyed an improved collection rate of 82 percent compared to 80 percent in the prior year.

At $22 billion, the group’s property value was 135 percent above prior year following an independent valuation. The increase was driven by growth in rentals and capitalisation rate remained unchanged during the period.

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