HARARE – In March, Simbisa CEO Baldwin Guchu addressed questions about the company’s potential shift into property development. The inquiry arose due to Simbisa’s rapid expansion, which saw the opening of 48 new outlets over the past year, bringing the total to 325 by March. An additional 27 outlets were planned by June. This growth, fueled by $54 million in capital expenditure over the last two years, involved acquiring, building, and maintaining prime properties.
Guchu clarified that Simbisa would continue to acquire prime locations and hinted at future strategies to unlock property value, use funds for expansion, and maintain their focus on the fast-food industry.
In line with this vision, Simbisa is launching the Pfuma Fund, a property investment fund with an initial portfolio of $28.5 million. The fund plans to list a real estate investment trust (REIT) on the Victoria Falls Stock Exchange, aiming to raise $15 million by selling 150 million units at 10 cents each. The funds will finance the construction of a $12.6 million complex in Ruwa and a $1 million drive-through in Eastlea on ED Mnangagwa Road (formerly Enterprise Road). Pfuma’s five-year plan includes additional developments in Kuwadzana, Marondera, and the Mbudzi area, targeting a portfolio value of $50 million.
The Ruwa complex, spanning 6 hectares along the Harare-Mutare road, will feature 18,000 square meters of lettable space, including a hardware store, Simbisa’s fast-food brands, a fuel station, a supermarket, and other retailers.
The Pfuma Fund expects to generate annual rentals of $2.2 million from its properties, including the newly opened Hogerty Hill Centre, valued at $18.5 million and projected to earn $112,000 in monthly rentals. Other assets in the portfolio include Cork Corner, valued at $7 million with a monthly rental income of $45,000, and the $3 million Chegutu project, which houses a fuel station and Gain Cash & Carry.
Pfuma’s strategy focuses on developing properties along key arterial roads to access high-growth areas, aligning with Zimbabwe’s development trajectory. This approach joins a growing number of REITs in Zimbabwe, pioneered by the Tigere Fund, which listed on the ZSE in 2022. A REIT pools investor funds into real estate investments, allowing investors to buy units in the trust and share profits from the investments.
Source: NewZwire
