- Mash Holdings aims to complete the Pomona Wholesale Centre by the end of Q4
- Construction work is in progress, with 46% of the project already completed
- Operating profit increased by 55%, revenues surpassed US$1.5 million
Harare- Following a remarkable 30% increase in revenue during the first quarter to March 2023 to US$1.594 million, with 74% of rental income in US dollars, Mashonaland Holdings has set its sights on a new target, the completion of the Pomona Wholesale Centre, a project encompassing wholesaling and flexible warehousing with a total lettable space of 14,000 square meters.
Completion is set for the end of the fourth quarter of the current fiscal year.
Mashonaland Holdings Limited is a property investment and development company in Zimbabwe, providing solutions to the retail, commercial and industrial sector established in 1966 and got listed on ZSE in January 1969.
Construction for the Pomona Wholesale Centre began in July 2023, and significant progress has already been made, with 46% of the project now completed. The installation of the roof structural steel on the main block is currently underway.
Excitingly, the group has already secured an anchor tenant, further solidifying the project's prospects. In fact, 60% of the development has already been pre-leased, indicating strong interest and demand.
The completion of the Pomona Wholesale Centre follows the successful conclusion of two prior projects: Milton Park and Mashview Gardens.
The pre-leased development of Milton Park, a project tailored to meet specific tenant requirements, reached completion in the fourth quarter of 2023.
Since January 2024, the tenant has taken over the property under a long-term lease agreement.
Similarly, the construction of housing units and the boundary wall in Mashview Gardens were finalized in the fourth quarter of 2023, with site clearance wrapping up in the first quarter of 2024.
The project is now undergoing final inspections to facilitate its handover.
The exceptional performance and successful completion of these projects have yielded significant results for Mash Holdings.
Operating profit surged by 55%, largely driven by the substantial revenue growth while investment property value saw a 2% increase, reflecting the capital expenditure incurred during the ongoing Pomona Wholesale Centre development project.
While occupancy rates remained steady at 87%, rental yields experienced a notable 6% rise, culminating in a closing rate of 8.5% compared to 8% in the corresponding quarter of the previous year. These positive trends indicate the company's continued growth and resilience in the market.
“Looking ahead, the Group remains focused and confident on implementing its portfolio diversification strategy which will enable the Group to deliver shareholder value.
“The Group will continue to put measures in place to manage the risk associated with new developments while also enhancing tenant experience in order to increase portfolio occupancy,” said the group.
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