HARARE - Zimbabwe Stock Exchange-listed Dawn Properties (Dawn) is disposing off its real estate arm firm CB Richards Ellis (Private) Limited (CBRE).

The company said it has given CBRE management a six month period to formulate a buy-out plan for the firm.

“Pursuant to this strategy, on June 6, 2011 the board approved the disposal of CB Richard Ellis and management has given exclusivity for six months to come up with a viable proposal to acquire the business,” group chairman Tendai Chimuriwo said in the company’s financial results for the year ended March 2011.

CBRE was acquired in 2006 as part of moves to boost the variable rate loan stock (VRLS)’s earnings and cash generation capacity.

He said the property group was also disposing of its interest in non-core assets, including its horticultural business, as the group escalates its restructuring exercise and focus on core business.

“This is a unique business that requires specialist skills and an intense oversight.

It is considered that the energies of the board and those of senior management should be concentrated on our core business,” Chimuriwo, who is also chairman of construction group Costain, said.

He said the Dawn would also move away from its exclusive lease agreement with African Sun Hotels  for its properties, whiles some might be sold off to fund its refurbishment.

“Some hotels may be offered to other operators on a lease basis while some may be sold to raise funding for the diversification and refurbishment drive of the remaining hotels,” Chimuriwo said.

He hinted that the property firm was also considering a merger as part of its growth strategy.

“Potential merger partnerships are being considered to accelerate the diversification of the business,” Chimuriwo said.

He said Dawn had pinned its growth prospects on the huge residential housing demand, with the country having more than a million potential home seekers.

“In response to this need Dawn has completed plans to execute the Baines Avenue flat project and is currently working on funding options.”

Chimuriwo said the company had engaged town planners to start initial work on its Marlborough housing development which expected to build 2 000 houses in the next two years.

“The retail development will be on about 17 hectares of land along Harare Drive.

The execution of the projects is likely to commence within the next two years,” he said.

Chimuriwo said the company had successfully managed to have a bond placed on its Crown Plaza property cancelled.

“The bond cancellation process took longer than had initially been advised but nonetheless the bond was duly cancelled,” he said.

During the period under review, Dawn’s revenues increased by 48 percent to $5,7 million.

Source: Daily News Zimbabwe