Browsing: commercial real estate investment

REITs to add depth and liquidity to Zimbabwe Capital Markets

Real estate investment trusts or REITs do not yet exist in Zimbabwe.

This will not be the case for long as internationally ubiquitous investment security is soon to be introduced to the country’s investment landscape. Only 5 other countries in Africa have this security or asset class as part of their respective investment landscapes.

The listed property sector in Zimbabwe on the stock exchange has been in a state of flux. The way that it looks right now is very different from the way that it looked like 15 to 20 years ago. There are only 2 pure play property companies listed on the Zimbabwe Stock Exchange namely Mashonaland Holdings and First Mutual Properties. Both companies are heavily involved in commercial and office real estate and to certain extent residential property.

Over the last 5 years, two other companies that were listed under the property category were delisted and…

One of the features that make the property unique as an investment is that it has a high unit value in comparison to other investments.

A nominal amount like ZWL$1,000.00 can buy an individual investor shares of a publicly listed company on the ZSE and the same amount in US dollars can purchase a decent number of shares through an offshore brokerage account.

This is not usually the case with real estate. There is very little an individual investor can do with ZWL$1,000.00 in terms of direct property investment, at least in the conventional sense.

Even with access to mortgage finance, an investor will also tend to be limited by their credit standing in terms of the funds that they can deploy into property investments.…

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