CFI Holdings says recoveries in its property division had helped the group report earnings growth for the first quarter ended February 28, 2018.
Giving a trading update, acting chief executive officer Shingirai Chibanguza said some of the income that was recorded by the group came on the back of property related recoveries.
Said Mr Chibanguza: “Other income during the period increased to $1,9 million against $1,6 million prior year, on the back of property related recoveries.”
“On the properties side, recoveries have progressed well on average.”
“Enhanced property related recoveries resulted in the group posting an 87 percent growth in profit before tax of $2,8 million, against $1,5 million for the same period last year,” said Mr Chibanguza.
He added that, “The group is now seized with finalising layout plans regularisation and development preliminaries to give impetus to the development stage of the project.”
Some of the recoveries pertain to residential stands in Harare south’s Saturday Retreat, popularly known as Ushehwekunze.
The land, where the stands are located is part of CFI’s Crest Breeders International, which was parcelled out to home seekers, through cooperatives, by land barons during the farm invasion era.
The Government, however, stepped in and struck a deal with CFI Holdings for residents to pay modest amounts in compensation to Crest Breeders International as part of efforts to regularize their stay.
The process will enable them to get title deeds once they have settled all their dues including tax obligations.
When the deal was struck back in 2015, residents were supposed to pay $4 per square-metre.
The figure will translate to $1 200 per residential stand for most of the residents with average stand sizes.
Recoveries are also related to another of CFI Holdings’ land under another development under Maitlands Zimbabwe where residents had illegally moved onto the undeveloped piece of property comprising 160 hectares opposite Glen View 7.
The group struck a deal to recover compensation for the land value over a 10 year period and has since finalized development plans and surveys to assist in progressing the development of the Estate.
Another property development under CFI Holdings is Suncrest Park where the group is developing and servicing 652 stands opposite Glen View 7.
Servicing of the stands is scheduled for completion by June 2018 after the Group secured funding during the year.