- Mashonaland Holdings recorded a staggering 97% upsurge in inflation-adjusted revenue
- MashView Gardens, now 87% complete, has made significant headway on the boundary wall, gatehouse, and electrification.
- Mashonaland Holdings plans to reduce CBD office space to 29% and augment office parks to 23%, retail to 18%, and tourism and industrial properties to 10%.
Harare - Mashonaland Holdings, a distinguished real estate investment and development firm, has witnessed a remarkable 308% Compounded Annual Growth Rate (CAGR) in revenue from FY'18 to FY'22. In the financial year culminating in December 2022, the company observed a staggering 97% upsurge in inflation-adjusted revenue, reaching $3.8 billion from the preceding year's $1.9 billion. This growth spurt can be attributed to the $1.2 billion in revenue generated by MashView Gardens, accounting for 30% of the total revenue. Rental income experienced a substantial 34% growth to $2.6 billion, bolstering overall revenue performance. Rent hikes were harmonized with current market conditions, while occupancy ascended to 87% in December 2022 from 81% in 2021.
Operating profit, prior to fair value adjustments, soared by 243% to $3.5 billion, primarily due to $3 billion in foreign exchange gains arising from the Charter House sale. Mashonaland Holdings divested the Charter House building for $7.4 million in a bid to amplify diversification. The group profit stood at $17.2 billion, in stark contrast to the $4.8 billion loss in 2021, predominantly owing to enhanced profitability and a 39% capital gain.
The company is on the verge of completing the inaugural phase of its MashView Gardens cluster housing development project, with plans to wrap up the remaining two stages of the $3.6 million enterprise during 2023's second quarter. Nestled in Harare's upscale Bluffhill suburb, MashView Gardens was unveiled in June 2021, amidst the global COVID-19 pandemic. The residential enclave represents one of Mashonaland Holdings' flagship undertakings, alongside the Milton Park Day Hospital medical facility and Pomona Wholesale Center. The firm confirms that all 25 units in the completed cluster homes were acquired before construction commenced.
MashView Gardens, now 87% complete, has made significant headway on the boundary wall, gatehouse, and electrification. "Cost containment strategies have yielded a robust profit margin for the developer," affirmed Mashonaland Holdings CEO Gibson Mapfidza at a recent analyst briefing.
Mashonaland Holdings has underscored the necessity of prioritizing portfolio optimization and diversification to offset losses stemming from the preponderance of office properties in the central business district (CBD). This comes as the company experiences surging demand for retail properties, particularly those in strategic locales. "Corporate exits from the CBD persist, but demand for retail space remains unwavering," stated Mapfidza.
By the end of its ongoing diversification program, Mashonaland Holdings aims to achieve a more well-rounded portfolio. Currently dominated by office space at 55%, the company's portfolio also encompasses industrial properties at 12%, retail at 7%, and residential and healthcare at 8%. As part of its forward-looking strategy, Mashonaland Holdings plans to reduce CBD office space to 29% and augment office parks to 23%, retail to 18%, and tourism and industrial properties to 10%.
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