Source: NRZ Pension Fund explores diversified income-generating investments – herald
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THE National Railways of Zimbabwe (NRZ) Pension Fund is exploring diversified income-generating investments in local and regional markets to preserve capital and ensure sustainable growth.
The NRZ Pension Fund is a self-administered pension fund, which began on October 4, 1949.
The fund’s chief executive officer, Mrs Chipo Hlabangana, said it was focused on preserving value while identifying growth opportunities across alternative asset classes and investments that complement its long-term pension obligations.
“The fund is currently reviewing several opportunities consistent with its Strategic Investment Plan, with priority given to stable, income-generating assets and regulated counterparties offering robust governance and credit enhancement,” she said.
She said the fund’s investments have continued to deliver solid returns, reflected in the reduction of void spaces across the property portfolio and improved occupancy levels following critical refurbishment projects.
Enhanced asset management, she added, has resulted in increased tenant retention and greater rental income stability.
“We allocate across property (a core strategic holding of circa 57 percent), listed and unlisted shares, fixed income/corporate bonds, cash and selective alternative investments,” she added.
“We are integrating environmental, social and governance (ESG) and seeking to improve liquidity via instruments such as the Chisipite redevelopment, the Revitus Real Estate Investment Trust (REIT) and a few others in the pipeline.”
She said construction of the Chisipite Mall in Harare, which is now 60 percent complete, was progressing steadily.
“With its strategic location and visionary design, Chisipite aims to transform the surrounding area into a vibrant mall, attracting both local and international customers, as well as offering a unique shopping experience to consumers,” she said.
“In parallel, tenant onboarding is actively in progress, with a strong pipeline of interest from different tenants, in retail, hospitality and healthcare. We still have open space for any other potential tenants that may want space at the mall.”
She said their leasing team was working to curate a well-balanced tenant mix that will offer shoppers diversity in product and service offerings.
The NRZ Pension Fund, she added, was also implementing a rooftop solar PV project across its commercial properties nationwide.
“The initiative involves installing solar panels on building rooftops to generate clean, renewable energy for the fund’s operational needs, with excess power to be supplied to the regional electricity grid.”
There are also plans to develop carbon project documentation and assets in line with the Zimbabwe Carbon Market Authority (ZiCMA) regulations.
“The project will be registered under the Gold Standard for the Global Goals (GS4GG) framework, enabling the fund to generate additional revenue from verified emission reduction (VER) credits,” she added.
On the Revitus REIT, Mrs Hlabangana said they had successfully onboarded a hotel operator, Leva Hotel Group, a Dubai-based hospitality brand expanding into Zimbabwe, while the property will trade under the name “Chester by Leva”, formerly Chester House in Harare.
Construction was scheduled to commence in 2026, with current progress focused on procurement and structural assessments.
“This partnership marks a significant milestone in the REIT’s growth strategy and underscores its commitment to attracting reputable international brands to Zimbabwe’s real estate sector.”
She also said the fund’s investment strategy is centred on increasing overall portfolio returns, diversifying into new sectors and markets, as well as preserving long-term value to meet ongoing pension obligations.
Mrs Hlabangana said the fund maintains a diversified investment portfolio comprising real estate, financial instruments and alternative assets designed to optimise returns while managing risk exposure.
“Yes, the fund owns real estate assets outside Zimbabwe, specifically in the United Kingdom, as part of its global diversification strategy. The fund’s property portfolio currently has an occupancy rate of approximately 88 percent, reflecting strong tenant retention and effective property management practices,” she said.
“The fund does not hold any derelict properties. All properties within the portfolio are actively managed and maintained, ensuring compliance with operational standards while preserving long-term asset value.”
The NRZ Pension Fund recently held a stakeholder engagement event at the Vicinity Complex (formerly QV House) in Bulawayo, which was recently repurposed in an effort to modernise it.
Several key areas at the complex have undergone significant renovations.
The focus was on creating a contemporary environment, particularly by installing clean, glassy cubicles that enhance the overall aesthetic and functionality of the space.
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