PROPERTY developer, Terrace Africa Asset Management has predicted that after funding additional projects across the country, the valuation of its portfolio would surpass US$50 million by 2025.
Terrace Africa, who are also asset managers, currently operate the Tigere Property Fund REIT listed on the Zimbabwe Stock Exchange (ZSE).
The REIT had an initial net asset value of US$22,2 million, which grew to US$22,54 million as of the end of 2023.
In an interview with businessdigest at the REIT’s analyst briefing last week, Terrace Africa managing director Brett Abrahamse said the company would kick off its additional projects.
“We have our Showgrounds, Greenfields project that is opening in November. And we are anticipating and hopefully going to do a similar transaction early next year with that project. That’s a substantial project,” he said.
“Probably the same size as Highland Park Phase 1. That would take us probably north of US$50 million within the 2025 financial year.
“You know, it is busy around there and we feel that part of town has been underserviced.
“We don't want to be seen as a northern suburbs developer. We want to see that we are developing projects for the benefit of everyone.”
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The company would next turn to building phase three within its existing Highland Park project, which will be mixed-use involving retail, offices, and hospitality.
“We have projects that we are looking at in Bulawayo, Kadoma, and Mutare. All these projects will be within the next five years,” Abrahamse added.
The firm has invested US$42 million worth of capital in ongoing projects and another US$27 million in projects still in the pipeline, businessdigest was informed.
“So, it is in addition to Phase 1 (of Highland Park). Phase 2 has complementary tenants, a lot of restaurants, pharmacies, and a great tenant mix, really good national tenants and multinational tenants and it's going to add a lot of value to Phase one,” the Terrace Africa boss noted.
“We are looking forward to putting it into the REIT, into Tigere, because it will yield and provide more income to the REIT so that we can pay dividends.”
He said the current REIT still had a lot of opportunities to tap into, which is why they were not focused on developing a new one.
“We have had an 80% increase in shareholders over the last year since we listed. In the first 10 weeks of 2024, we have done almost US$2,5 million worth of trade, which shows that there is a lot free float, and there is a lot more interest in our stock,” Abrahamse noted.
“I believe that both the ZSE and the VFEX (Victoria Falls Stock Exchange) have a role to play in Zimbabwe.
“We will continue to monitor which exchange we should be listed on, but to date, the ZSE has been very rewarding for us. We would, in the future, consider listing on the VEFX.
“But as I said, for now, as it stands today, we are still very happy with the ZSE.”
The company is also planning on expanding its portfolio into housing.
“Probably not low-cost housing. Housing within our precincts and developments, but not low-cost housing, if that makes sense. We are not going to be building two-bedroom housing, but we will be building within our precincts,” Abrahamse said.
“We will be building housing developments or apartment blocks.”
Plans on implanting smart technology on its properties and to improve environmental, social and governance (ESG) standards in the long run, are in the pipeline.
“We have smart technology for water, power, and LPG (liquified petroleum gas) usage, which we provide to all our tenants. We are looking to integrate our billing systems with an application that benefits tenants on a month-to-month basis (to) keep our relationship open with them and allow them to communicate with us easily,” Abrahamse said.
“We want to ensure that we are providing solar, and rainwater harvesting and reporting on those things in our annual report.”
