Mutapa Investment Fund plans to establish a Real Estate Investment Trust (REIT) to unlock value from its portfolio of dormant and underutilised properties, including significant assets held by entities such as the National Railways of Zimbabwe (NRZ) and the Cold Storage Company (CSC).
The planned REIT will consolidate selected real estate assets into a diversified, income-generating vehicle aimed at improving asset utilisation, enhancing transparency, and delivering sustainable returns.
Mutapa said the initiative forms part of a broader strategy to strengthen the performance of its Real Estate Cluster amid stabilising macroeconomic conditions and renewed investor interest in property assets.
The move comes as Zimbabwe’s real estate sector shows signs of recovery, supported by moderating inflation, stabilisation of the ZiG currency, and improving investor confidence. Mutapa noted that these conditions have improved asset pricing and reduced valuation distortions that previously constrained investment decisions in the property market.
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According to the fund, the REIT will focus on transforming dormant land and buildings into productive assets through targeted development and active property management. Assets linked to major state-owned enterprises such as NRZ and CSC are expected to form part of the initial portfolio, reflecting the scale of undeveloped and underperforming property within the fund’s holdings.
Mutapa said the REIT structure is intended to provide liquidity and diversification while offering investors exposure to income-producing real estate. The initiative follows the growing use of REITs in Zimbabwe, with recent listings reflecting increasing confidence in structured property investment vehicles.
The fund’s real estate portfolio delivered mixed performance in 2024, with industrial properties recording the highest yields, supported by demand from the agriculture and mining sectors, while central business district office vacancies remained elevated.
Despite these challenges, Mutapa said demand across residential, industrial, and mixed-use developments remains resilient.
Mutapa indicated that the proposed REIT will be a key instrument in repositioning its real estate assets in 2025, with the objective of generating stable income streams and supporting long-term capital growth while reducing the burden of idle properties on the balance sheets of portfolio companies.
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