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Dawn Properties - Operational Review

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Dawn Properties Limited (Dawn Properties), formerly a 100% subsidiary of Zimbabwe Sun Limited (Zimsun), was incorporated as a variable rate loan stock (VRLS) company by converting is ordinary share …

Dawn Properties Limited (Dawn Properties), formerly a 100% subsidiary of Zimbabwe Sun Limited (Zimsun), was incorporated as a variable rate loan stock (VRLS) company by converting is ordinary share into linked units.

Zimsun, now African Sun Limited (Afrisun), owns about 17% of the company enabling it to have an independent vision.

The business of the company, which is incorporated in Zimbabwe, is that of an investment property holding company and through its 100% owned subsidiaries owns properties in the tourism sector.

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  • 1.  
  • 2.
    • Dawn Properties Limited (Dawn Properties), formerly a 100% subsidiary of Zimbabwe Sun Limited (Zimsun), was incorporated as a variable rate loan stock (VRLS) company by converting is ordinary share into linked units.
    • Zimsun, now African Sun Limited (Afrisun), owns about 17% of the company enabling it to have an independent vision.
    • The business of the company, which is incorporated in Zimbabwe, is that of an investment property holding company and through its 100% owned subsidiaries owns properties in the tourism sector .
    Group Overview
  • 3. Group Overview
    • The company was incorporated as a Variable Rate Loan Stock when its shares were converted into linked units on listing.
    • Dawn Properties Limited was the first counter with variable rate loan stock to be listed on the ZSE.
    • The property portfolio, at the moment, is skewed in favour of tourism related assets. The assets are geographically spread out in all major tourist destinations.
    • The tourism sector gives the properties a premium when compared to other portfolios due to the strategic importance of tourism to Zimbabwe.
    • The portfolio will however be diversified at the earliest opportune.
  • 4.
    • Dawn Properties Limited is a major player in the country’s property sector.
    • The company has the following assets:
      • 1. Eight (8) hotels throughout Zimbabwe
      • 2. Residential and commercial zoned land
      • 3. A Marina by Lake Kariba
    • The company offer property related services, through its subsidiary CB Richard Ellis,
      • 1. Property Management
      • 2. Development and Project Management
      • 3. Valuation Advisory Services
      • 4. Property Sales
    • 5. Research and Development
    THE INDUSTRY
  • 5.
    • The company broad strategy is to consolidate its presence in the tourism sector and to significantly diversify its portfolio composition.
    • The current portfolio is made up of hotel properties which account for 92% of the assets of Dawn Properties Limited.
    • The current tourism portfolios will be refurbished or redeveloped, if need be, so as to maintain our stronghold in the property sector. Opportunities to acquire or construct more hotel properties will be dealt with on a case by case basis.
    BUSINESS STRATEGY
  • 6. BUSINESS STRATEGY The envisaged optimum portfolio is schematically shown in the pie chart.
  • 7.
    • The projected portfolio mix will be achieved by aggressively investing in the agro based assets. Dawn Properties owns over 280 hectares of prime land in Harare, zoned for residential and commercial development.
    • Servicing and developing residential and commercial land is uneconomic at the moment due to exorbitant costs and lack of liquidity on the market.
    • An interim land use plan is being developed for the 280 hectares which will provide the company with an opportunity to carry out agro based activities on the land pending development.
    • The cash flow projections for the agricultural activities are significant and will enable Dawn Properties to partake in residential and commercial development at the right time.
    BUSINESS STRATEGY
  • 8. BUSINESS RISKS
    • The property sector is still to find its correct position following the liberalisation of the economy of Zimbabwe.
    • Construction costs are still high to enable profitable execution of construction projects. The country relies on imports for the bulk of materials required on a construction site. Punitive import tariffs and scarcity of the currency in Zimbabwe gave rise to expensive construction materials.
    • The sector experienced severe brain drain as a result of massive construction projects in South Africa and the meltdown of the Zimbabwean economy.
    • The technical capacity of the sector was affected, however the changes in the political environment will make it possible to retain and attract skilled labour in the region.
  • 9. BUSINESS RISKS
    • Rental yields are still depressed when compared to the regional yields enjoyed in Southern Africa. The sector is lagging behind in terms of actual yields being achieved on property investments.
    • The Zimbabwean economy is significantly illiquid, there is a shortage of long term funding on the market. The interest rates on the available short term funding are punitive.
    • The sector requires medium to long term funding which is correctly priced in order to execute meaningful projects.
  • 10. Some of the properties in pictures
  • 11. Some of the properties in pictures Elephant Hills Resort Victoria Falls
  • 12. Some of the properties in pictures
  • 13. Troutbeck Resort Some of the properties in pictures
  • 14. Some of the properties in pictures Troutbeck Resort
  • 15. Some of the properties in pictures
  • 16. Some of the properties in pictures Caribbea Bay
  • 17. Some of the properties in pictures Caribbea Bay Marina
  • 18. Some of the properties in pictures Hwange Safari Lodge
  • 19. Some of the properties in pictures Hwange Safari Lodge
  • 20. Some of the properties in pictures Hwange Safari Lodge
  • 21. Some of the properties in pictures Hwange Safari Lodge
  • 22. Some of the properties in pictures
  • 23. Some of the properties in pictures Great Zimbabwe Hotel
  • 24. Some of the properties in pictures Great Zimbabwe Hotel
  • 25. Some of the properties in pictures
  • 26. Some of the properties in pictures Crowne Plaza Monomotapa . Harare
  • 27. Some of the properties in pictures Crown Plaza Monomotapa . Harare
  • 28. Some of the properties in pictures
  • 29. Some of the properties in pictures Holiday Inn Mutare
  • 30. Registered Office and Business Address 8th Floor Beverley Court, 100 Nelson Mandela, P.O. Box CY 1618, Causeway Harare. Telephone 263-4-733633/4 – 733647/624 263-4-730774/5 – 730764 Fax 263-4-796172 Web: www.dawnproperties.co.zw CHIEF EXECUTIVE OFFICER Mike Manyika [email_address] FINANCE EXECUTIVE Bright Magura [email_address] COMPANY SECTRETARY Nora Tome [email_address] Contact Details
  • 31. Thank You !!!!

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