Pearl properties target SMEs

LISTED property concern Pearl Properties says it is now turning its focus to the growing SMEs market to cover for the falling occupation rate in its properties.

Pearl said the property sector is facing huge challenges as can be evidenced by the 30 to 40 percent occupation rate in most buildings in the central business district owing to the economic problems bedeviling the country.

Presenting company results for the half year ended June 30, 2014 general manager-property services Christopher Manyowa said work has already began to renovate some of their buildings to accommodate small businesses.

“…one of the strategies is to market the vacant space in the CBD. There are various things we want to do in this area so we are working on our buildings to create small spaces to accommodate small players in the market.

“Work has started at Pearl House, but we will not randomly go around demarcating without taking regard of the amount of traffic that will be involved.

“The strategy of creating small space was reached because of the economic situation prevailing in the country were things are going down and as a business we cannot wait and watch as we go down with the economy.

“So as we wait for the economy to improve we are going with this strategy because we have realized that there are a significant number of people starting small businesses these days,” he said.

Since dollarization the country has witnessed a sharp increase in the number of companies that have closed shop because of viability problems and this development has opened way for the sprouting of SMEs as the affected workers look for other means of survival.

However most of these SMEs are operating either at undesignated spaces or in their backyard because they are unable to pay high rentals charged by property own in the CBD area.

SMEs across the country have on countless occasions appealed to government and relevant authorities to avail to them affordable working space if they are to significantly contribute to the country’s gross domestic product but it appears their calls have fallen on deaf ears.

According to the FinScope Survey Zimbabwe 2012, there are over two million registered SMEs in the country and accounting to 5.7 million jobs directly.

SMEs interview by this paper said property owners were inconsiderate of the prevailing economic situation that has been characterized by excessive liquidity problems and high utility bills.

Meanwhile Pearl Properties managing director revealed that rentals have been stagnant in the last six months owing to new tenants who are demanding reduced rentals adding that the situation is hampering rental negotiations on the market.