Tigere REIT signs preemptive agreement for two more malls
TIGERE Real Estate Investment Trust (REIT) has reportedly signed two pre-emptive agreements with property developer Terrace Africa to acquire new properties that would be added to their current portfolio.
A pre-emption agreement is a contractual agreement giving a specific person or organisation the right to buy land or buildings before any other third-party buyer for a fixed period. If the pre-emption is triggered then the buyer does not have to buy, but the seller must offer it to them before selling to anyone else.
The two properties to be acquired by Tigere REIT include the recently completed second phase of the Highland Park Mall project and Greenfields Shopping Centre, which is currently under construction at the Showgrounds.
A source said, “Tigere has signed a pre-emptive agreement with Terrace Africa to acquire the property (Highland Park Mall Phase 2) via a rights issue in the first quarter of 2024. They have also signed another pre-emptive agreement for the Greenfields Shopping Mall.)
The Highland Park Mall phase 2 project was officially opened last Friday as Terrace Africa completed its US$20 million extension.
“Highland Park Mall second phase was officially opened on Friday. The new phase has 22 tenants with Spur, Ocean Basket, Roccomamas and Booties being the major tenants.
Simbisa sunk about US$1 million in fitting out their shops at the mall,” the source added.
The real estate firm embarked on the second phase of the Highland Park Mall after the first phase was oversubscribed and retail traders requested more space, promoting Terrace Africa to embark on the US$20 million expansion project.
The Tigere REIT has two properties, including Highland Park, and the first phase which opened in June 2022 has 27 retail shops on a lettable area of over 6 000 square metres. It houses tenants such as Pick n Pay, the anchor tenant, plus Puma and Simbisa.
Another Terrace Africa property that is part of the REIT is the US$3,7 million Chinamano Corner, which has 13 shops and offices plus a Simbisa fast-food outlet.
According to Tigere Property Fund, which owns the Tigere REIT, about 75 percent of income earned from tenants is US dollar-denominated and occupancies are currently reported at 100 percent.
The property company vowed to continue investing in the country’s property sector. “As Zimbabwe grows, we as a company are positioning ourselves to be at the front of retail development,” the company said.