• Project Progress: 65% complete, with an expected completion by the end of the fiscal year
  • Financial Performance: Rental income contributed US$2.7 million, marking a 15% increase
  • Profit Growth: Achieved an operating profit of US$1.7 million (up 53%) and a profit after tax of US$2.38 million (up 72%)

Harare– Mashonaland Holdings Limited, a leading property development company’s flagship Pomona Commercial Centre project is now 65% complete according to the company’s financial results for the six months to 30 June 2024.

The company is optimistic about completing the project by the end of the fiscal year in the fourth quarter.

This development which consists of wholesaling and flexible warehousing is projected to achieve an entry rental yield of 9%, with 60% of the space already pre-leased.

Given the projected 9% entry rental yield, on a budgeted US$12.2 million for the project,  this indicates that the expected annual rental income will be around US$1.1 million once the property is fully operational and leased. This figure reflects the potential return on investment for stakeholders involved in the project.

The Pomona Commercial Centre has a development budget of US$12.2 million and serves as the group's flagship initiative. Notably, rental income is a cornerstone of the company's earnings, contributing over 80% to total revenue.

For the half-year to June 2024, Mashonaland Holdings reported revenue of US$3.6 million, a 15% increase from the previous year. Of this, rental income accounted for US$2.7 million, up from US$2.3 million in the same period in 2023.

In addition to Pomona, the company has successfully completed other projects, including the Mashview Gardens cluster housing development, which generated revenue of over half a million dollars (US$542,227).

The Van Praah Day Hospital project has also been completed and has started earning rental income under a long-term lease since January 2024.

The group successfully reduced property expenses from US$1.1 million in 2023 to US$811,000, resulting in an operating profit of US$1.7 million—a 53% increase.

As a result, the company recorded a profit after tax of US$2.38 million, reflecting a remarkable 72% growth compared to the same period last year.

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