Nicoz Diamond to value-add 70 000m2 land bank

ZIMBABWE’S largest short term insurer Nicoz Diamond has announced plans to value-add its 70 000 square metre land bank earmarked for the development of high density residential stands in Bulawayo and develop housing units on five of its stands in Harare’s Monavale area.

The move is meant to preserve value for the Zimbabwe Stock Exchange listed company while maximising return on investment and comes at a time a number of property developers have resolved to hold on to their land and housing units.

Nicoz Diamond MD Grace Muradzikwa told Property Guide yesterday the company is currently looking at ways of unlocking value and maximising returns by ensuring that apart from capital appreciation that comes through holding on to the pieces of land in question, the company also gets some additional return and liquidity in form of rentals.

“So for Monavale stands we will build and rent out houses while for Bulawayo the strategy is to value add before we can dispose part of the value added product,” she said.

In Monavale, the company has five individual stands.

Nicoz has in recent years reduced vacant pieces of land and value adding, the company last week said at its 2017 annual results briefing.

In line with the market, the company did not register much movement on its properties portfolio.

“The property market continued to be characterised by increased voids and downward revisions of rentals, which ultimately affected property values,” Nicoz Diamond said.

“Occupancy of the group’s properties however remained above market average. In the market in general, rental collection challenges did not go away but collection efficiencies for the group’s properties improved owing to more stringent tenant vetting,” added Nicoz Diamond.

The group, recently acquired by FML Holdings, made an overall total comprehensive income of $3 million which was a significant surge from the $52 507 achieved in 2016. FML now has 81 percent shareholding in Nicoz Diamond with plans to buy out the remaining minority.

Nicoz will delist in line with ZSE rules.

FML, which also owns First Mutual Properties, last week announced a strategic focus on student accommodation, retail and office parks.

The performance was largely buoyed by the good performance from the company which posted a profit after tax of $2,4 million a significant improvement in performance from the $1,7 million of 2016.

Nicoz Diamond said gross premium written increased by 9 percent as both company and UGI Malawi recorded modest revenue growth during the year.