Dawn Properties Records $4.3 million Profit
Real estate company, Dawn Properties is looking to benefit from increased tourists volumes at Victoria Falls after recording US$4.3 million profit for the year ending 31 December 2016.
The Group chairman, Phibeon Gwatidzo said the company is encouraged by the optimism of the tourism industry with respect to increased volumes in Victoria Falls.
“With the opening up of the new airport and a number of airlines such as Turkish Airways, Qatar Airways amongst others’ interest in the route, the company expects an increase in tourist arrivals in Victoria falls in the second half of the year ,increasing the weekly airline seat arrival by 40% from 3918 to 5 532,”he said.
Gwatidzo noted that rental revenue earned for the 2016 financial period stood at US$2.4 million compared to US$1.8 million for the 9 month period ending 31 December 2015.
The company had a total debt of US$4.3 million, with US$2.3 million deployed towards the acquisition of land from City of Harare while US$1.8 million towards the development of the 58 residential units in Marlborough.
“Historically, the company has never had a debt or similar facilities with any financial institution, having considered the need for the company to diversify its revenue streams and hedge against rental decline from hospitality, the company’s emphasis was put on unlocking value on company’s residential land bank,” said Gwatidzo.
In view of the need to invest into a number of capital projects, the company’s Board resolved not to declare a dividend for the period ended 31 December 2016.