Zimre signs Pick n Pay as anchor tenant
DIVERSIFIED financial services group, Zimre Holdings Limited, has entered into a deal with TM/Pick n Pay that will see one of the country’s leading retailers becoming an anchor tenant in the insurance concern’s property development projects going forward.
The move is in tandem with the financial services group’s efforts to reconfigure its property portfolio into predominantly commercial and retail.
Zimre Holdings chief executive Stanley Kudenga told our sister paper, The Herald Business that there are a number of exciting projects being lined up by the group within its property portfolio.
“We have some exciting developments and projects in our core competences which is insurance and property.
“We are reconfiguring our portfolio predominantly business premises and almost 90 percent business offices so that we get to more of commercial and retail.
“In Harare, we have projects lined up that are exciting and we are looking at forging a partnership with Pick n Pay where most of our projects going forward will have Pick n Pay as our anchor tenant,” said Mr Kudenga.
He said the group has also moved out of its property, Zimre Centre, in the capital as part of the group’s property reconfiguration and the funds will be channelled towards projects in Victoria Falls and Bulawayo. In Victoria Falls, Zimre Holdings through Zimre Property Investments, will be constructing a $13 million shopping mall in Victoria Falls as part of its diversification plans.
Meanwhile, Zimre Holdings has completed consolidation and rebranding of its reinsurance operations to Emeritus International.
Baobab Reinsurance, the largest reinsurance company in Zimbabwe under Zimre Holdings, was rebranded to Emeritus Reinsurance.
Emeritus Reinsurance managing director Leo Huvaya last week said there are efforts to strengthen the company’s capital position in order to compete against local and regional competitors.
“We are looking at strengthening our capital position to match top regional reinsurers. The company had lost ground to local and regional reinsurers but going forward we are looking at regaining that market share.
“The company had lost market share due to sanctions and what is critical is that there will be innovation and excellence going forward.
“What is key in our business is skills and we believe we have the right skills to compete again,” said Mr Huvaya last week during the official launch of Emeritus Reinsurance .
“We had gone into hiding because of sanctions but we are out now and we believe this is a new dispensation for the company,” he said.
Mr Huvaya said the company will be looking at listing on the Botswana Stock Exchange (BSE) to raise more capital. Zimre Holdings last year secured regulatory approvals to consolidate its regional reinsurance assets into an entity that will list on the BSE.
The regional operations included the whollyowned Malawi Reinsurance and Zambian Reinsurance, its shareholding in First Reinsurance of Botswana and Uganda Reinsurance where it held 2.43 percent shares which were folded into Emeritus International Reinsurance Company which will list separately on the BSE.
“We want to list on the Botswana Stock Exchange so that we raise more capital and be competitive to other players in the region. We want to regain lost ground.”
In a speech read on his behalf by Ministry of Industry and Enterprise Development director, Constance Zhanje, Minister Dr Mike Bimha said Government acknowledges the contribution of the insurance industry in mobilising savings and other resources for national development.
“This rebranding of Baobab Reinsurance to Emeritus Reinsurance is a notable attempt to rejuvenate and position the business for further growth,” she said.
Mrs Zhanje said reforms being implemented by Government to attract foreign investors and place the economy on a sustainable and accelerated growth trajectory, should make all economic players move in the same direction.
“As the economy grows, there is surely an inevitable need for additional insurance capacity to support the growth of key sectors of agriculture, mining, tourism, construction, manufacturing as well as infrastructure development,” she said.