TIGERE Property Fund has announced its intention to officially start operating Highland Park Phase 2 before Christmas as it continues to grow its footprint in the property segment.
First phase of the multimillion-dollar Highland Park facility was officially commissioned in June 2022 after a year of construction.
The facility is the epitome of the growing migration of companies and retail sector from Harare Central Business District (CBD), as they escape from the poor aesthetics of a filthy city centre that has become filled with untidiness and unkempt surroundings.
Harare CBD’s appeal has lately been characterised by poorly maintained infrastructure and neglected properties a position that has created a negative impression on clients, employees, and visitors.
This has been compounded by increased congestion, high parking fees, and heavy traffic enforcement.
This has seen growth in corporate exits from the CBD preferring to set their businesses, office spaces, and head offices in cleaner and well-maintained areas to project a more professional image.
Another school of thought says the move is being spurred by the proliferation of budding small and medium enterprises that require convenient workspaces.
“We are pleased to announce that Highland Park Phase 2 shall be opened prior to the busy Christmas season and should improve turnovers for the existing tenants due to increased activity in the node.
Tigere REIT holds a pre-emptive right to acquire Highland Park Phase 2 on completion.
“Due to robust tenant demand, certain unutilised space is being converted to generate additional rentable area. Marginal growth in rental income is expected due to the creation of additional space,” said Tigere Property Fund in the trading update to September 2023.
More and more activity is being witnessed in the retail sector as the economy continues to grow and tenants continue to demand good quality leasing options.
Property specialists have long identified that Harare CBD needs to come to the party and ensure that the CBD is always pristine if it is not to experience more desertion and relevance.
However the property market continues on a growth trajectory, with a number of exciting developments ongoing across the country, and Tigere has fixed its eyes on retail and commercial property segments.
“Both Chinamano Corner and Highland Park Phase 1 maintained their stellar performance for the quarter. Both assets are coveted real estate assets and remained fully occupied and showed increased customer footfall.”
In the period under review, Tigere’s Net Property Income closed at US$1 278 679 while total comprehensive income closed at US$804 899 with a property expense ratio percentage of 18, 50 percent.
Occupancy level in the Tigere’s properties mainly Chinamano and Highland Park properties was 100 percent at rentals of US$17, 75 per square metres.
Tigere Property Fund has a net asset value of US$22, 5 million.
The Fund declared an interim dividend of 0,0327 United States cents per unit for the quarter and 19,5 ZWL cents per unit in line with our commitment to pay quarterly distributions.
“Based on our forecasted net income for the final quarter, we expect sustained growth in distributions to unit holders.”
Demand for suburban office space continues to soar albeit unfortunately, infrastructure spending on key arterial roads and maintenance provides an ongoing challenge for Property developers.
Tigere Property Fund is expected to have more properties on its portfolio as the developer indicated it had a solid project pipeline.
With a portfolio comprising two modern properties Highland Park and Chinamano Corner, the Tigere REIT is a brainchild of Terrace Africa, which also developed the Village Walk in Borrowdale.