Tigere Property Fund, a Real Estate Investment Trust (REIT) posted good results which saw a 12% increase in rental revenue from US$1.5 million to US$1.7 million for the year ended 31 December 2024 compared to prior year.
The fund’s asset base grew by 51% from US$22.5 million to US$34 million following the addition of Highland Park 2 to its property portfolio during the year.
The fund’s property portfolio occupancy level for the period under review was 100% despite challenges experienced in the retail sector during the year. The retail sector which previously contributed over 50% of the fund’s total GLA has seen reduced occupancy levels and is now contributing 25.7% of GLA. The reduction is attributed to the growth of the informal sector, inflationary pressures and exchange rate disparities which saw some of the retail sector players reduce their branch network in a bid to lower overheads.
The fund which retains a pre-emptive right to acquire Greenfields Retail Centre, which is located along Samora Machel and adjacent to the Zimbabwe Agricultural Showgrounds looks forward to completing the transaction in the third quarter of 2025.
Tigere has interests in Highland Park Phase 1, Chinamano Corner and Highland Park Phase 2 in Harare.
The fund continues to diversify its clientele with the introduction of new tenants outside the retail sector with some of the properties housing companies as offices. The country has witnessed growth in the construction sector with new developments occurring across the country. According to the company there is need to have a tenant mix which should shield rental income from macroeconomic risks and pressures.
With the property market booming, the fund is set to grow its asset base as it acquires new projects. The growth comes at a time the government has opened the country for businesses to thrive. The latest intent to reduce taxes is also going to endear investors who are eyeing various sectors of the economy for investment.
