The Sunday Mail
LISTED industrial and agricultural concern TSL Limited says occupancies at its real estate unit TSL Properties remained just under 100 percent in the past year as heightened activity in the tobacco sector spurred demand for warehousing.
The three-year-old TSL Properties specialises mainly in industrial warehousing.
TSL group operations executive Mr Dereck Odoteye said there was strong demand for tobacco warehousing, even during the off season.
“We look at who is moving large volumes of product and where are they storing it at the moment (sic) then we offer service that is competitive and give value for money…
“It’s about finding the right tenant and make sure they pay. We thoroughly select our customers to ensure we get the right tenant than have a vacant space. Our space is huge volume space, with the smallest unit being 3 000 square metres,” said Mr Odoteye on the sidelines of the group’s AGM in Harare last week.
The 2015 tobacco selling season opened on March 4.
Industry regulator the Tobacco Industry Marketing Board (TIMB) expects more than 195 million kilogrammes of the golden leaf in the current marketing season, a 9,7 percent drop from last year’s total.
Mr Odoteye said demand for warehousing space remains strong. TSL Properties reported third party tenancy, which involves a lease that is transferable to another person, rose eight percent to 33 percent in the year to October 31, 2014.
Other commercial property companies are, however, struggling as the economy remains weak.
For example, Mashonaland Holdings recently reported in its 2014 annual report that total occupancy at its properties dropped to 82 percent in 2014 from 85 percent recorded a year earlier year.
TSL is presently embarking on a phased refurbishment programme designed to protect its property values and meet specific tenant requirements.
Feasibility studies for the construction of an industrial park in Harare are currently underway.
The group’s car hire and travel business, however, is performing below expectations due to “the increase in the number of unregulated players in a depressed tourism industry”.
Overall, the company’s net profit dropped to US$4,9 million from US$5,8 million a year ago.
TSL group chief executive officer Mr Washington Matsaira said last week earnings are expected to be flat in the current financial year on lower tobacco output.
