Listed property fund Revitus Property Opportunities Real Estate Investment Trust (REIT) is doubling down on Harare’s moribund Central Business District (CBD), wagering that targeted refurbishments and adaptive reuse will unlock value even as corporates continue migrating to suburban offices.
The move comes at a time when businesses’ shift out of the CBD is accelerating, pushing up rentals in areas in the CBD’s proximity – such as Borrowdale, Highlands and Newlands – by as much as 12 percent year-on-year, while vacancies in the city centre hover around 60 percent.
But REIT is taking a contrarian position.
In its audited financials for the year ended 31 December 2025, the fund manager said suburban properties had outperformed, while CBD assets remain under pressure.
“Suburban office and retail properties performed well, while CBDs in Harare and Bulawayo faced persistently high vacancies,” the fund said.
Despite this, the REIT has continued to invest in its CBD portfolio, reporting a marked improvement in occupancy levels and income.
The occupancy ratio rose to 52 percent during the period under review, from 39 percent in prior year, while gross rental income increased to US$1.07 million from US$907,754. Net property income also grew to US$757,292 from US$594,429.
The fund posted a profit of US$4.6 million, driven by higher rental collections and fair value gains.
“Ongoing renovations of critical amenities at CBD properties… are aimed at improving the REIT’s short to medium-term performance,” the fund manager said.
Upgrades to buildings such as Electra House and Africa House, including elevator refurbishments, helped improve tenant uptake, particularly on upper floors, while the REIT has broadened its tenant base beyond traditional corporates.
“The increase in occupancies was also driven by… targeted marketing of vacant spaces to informal sector SMEs and tenants with higher space appetite, such as private colleges and churches,” the report noted.
This shift reflects broader structural changes in the property market, where corporates are opting for suburban locations offering better infrastructure, parking and accessibility.
Property experts say the trend has pushed suburban rentals to between US$8 and US$13 per square metre, compared to US$4 to US$8 in the CBD, with demand increasingly driven by commercial conversion potential.
Revitus, however, is betting that the CBD still holds long-term value, particularly through repurposing.
Its flagship project involves converting Chester House into a three-star hotel, with construction expected to begin in the second half of 2026 following regulatory approvals.
The fund said it “remains committed to its long-term goal of revitalizing CBD properties to deliver sustainable returns to investors”.
Investment property values within the portfolio rose 4.5 percent to US$14.15 million, while net asset value increased by 20 percent to US$25 million, reflecting the impact of ongoing upgrades and repositioning efforts. – TML