- Negotiations for a potential buyer are underway
- Renovations at Chiyedza housing are complete
- Occupancy levels increased to 93%
- Revenue grew by 37%
Harare – Zimbabwe Stock Exchange (ZSE) listed property investment and development firm, Mashonaland Holdings is set to commission its first batch of houses under the Mashview Gardens cluster housing project in Bluffhill Harare during the first quarter of 2022.
In a trading update for the 12 months ended 30 September 2021, the Group also highlighted that renovations at the Chiyedza House co-working hub were complete and the facility was opened for leasing from the first of September this year.
Earlier this year, the Group unveiled US$4 million for the Mashview housing project which is expected to be fully complete in 18 months.
Mashview project’s marketing is ongoing, and the company is in negotiations with a potential buyer for completed housing units.
Meanwhile, the industrial sector remained resilient with average yields of 8% across the market as well as occupancies above 90%, while the residential sub-sector continued to attract new development activities due to high demand for residential space.
During the period under review, revenue increased by 37% compared to the same period last year driven by periodic rent reviews while occupancy levels saw a marginal rise of 2% from 79.2% during the prior year to 80.6%.
“The improved revenue performance was also driven by new leases concluded during the period,” the Group said in a statement accompanying the trading update.
Resultantly, operating profit soared by 18% with the operating profit margin decreasing by 14% following an increase in operating expenses.
“Increase in operating expenses was driven by movement in unofficial market exchange rates which had a bearing on the Zimbabwe Dollar value of maintenance materials and services consumed by the company,” added the Group.
Going forward, the Group remains focussed on its strategic priorities which include portfolio diversification and portfolio optimisation to sustain overall business performance.
The Group changed its reporting date from 30 September to 31 December starting from the current financial period and its audited financial performance for the 15 months ended 31 December 2021 are to be published in Q1 2022.
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