- New Facilities Completed: Commissioned TrustProp Aluminium and BrickFusion Manufacturing, enhancing control over construction materials
- Key developments, including Pomona City and Millennium Heights, are on track for completion in 2025
- The Group achieved an 80% revenue increase in 2024, reflecting strong operational efficiencies
Harare- West Properties (West Prop), a leading real estate development company specialising in residential estates, commercial properties, and innovative construction solutions, has commissioned its state-of-the-art glass and aluminium fabrication plant, TrustProp Aluminium, and established BrickFusion Manufacturing, a brick-moulding factory in FY2024 according to its latest 2024 financial results.
These strategic initiatives mark a pivotal step in West Prop’s vertically integrated approach, enhancing control over construction materials, improving cost efficiencies, and ensuring superior quality.
TrustProp Aluminium produces high-quality glass and aluminium products tailored for the construction industry, serving both internal project needs and external clients, while BrickFusion Manufacturing mitigates brick supply delays, aligning with the Group’s ambitious “One Billion Bricks by 2050” vision.
West Prop’s project portfolio demonstrates robust progress across completed and ongoing developments, reinforcing its market leadership. Pomona City Residential Estate, a flagship project, has completed Phase 1A infrastructure, including asphalt roads, stormwater drainage, and water reticulation, enabling clients to begin home construction.
Although contractor resource constraints delayed Phases 1B and 1C, these are expected to be construction-ready by Q2 2025. The launch of Pomona City Walk-Up Flats, offering 1-, 2-, and 3-bedroom apartments, broadens the project’s appeal.
At Millennium Heights, the completion and handover of Block 3, a four-storey building with 112 luxury apartments featuring solar power, fibre internet, and backup water systems marked a significant milestone.
Block 4, under construction at a pace of one floor per month, is set to deliver 86 units by June 2025. Additionally, the Millennium Heights Aparthotel, launched under a Real Estate Investment Trust (REIT) managed by Nhoro Asset Management, diversifies West Prop’s investment offerings.
Phase Two of Pokugara Residential Estate, comprising 69 luxury townhouses, is on track for completion by June 2025, with plans for amenities such as a gym, tennis court, swimming pool, and skateboard park to enhance the estate’s lifestyle appeal.
Financial performance
The Group achieved an 80% revenue increase, rising from USD 16.09 million in 2023 to USD 29.05 million in 2024, driven by Pomona City (USD 15.61 million), Pokugara Residential Estate (USD 9.42 million), and Millennium Heights (USD 4.02 million).
Gross profit surged 90%, from USD 5.88 million to USD 11.15 million, supported by improved operational efficiencies and a cost of sales increase to USD 17.89 million from USD 10.21 million.
A USD 18.84 million fair value gain on investment properties, though lower than the USD 49.51 million in 2023 due to a stabilised valuation environment under Zimbabwe Gold (ZiG), bolstered profitability.
Associate profit grew from USD 0.85 million to USD 1.13 million, driven by fair value gains in associates’ investment properties.
However, profit for the year dipped slightly to USD 18.26 million from USD 39.43 million, primarily due to lower fair value adjustments and higher operating expenses (USD 8.64 million, up from USD 5.18 million) tied to expansion efforts.
Basic earnings per share fell to 61.86 cents from 131.42 cents, while headline earnings rose from 4 cents to 8 cents, reflecting core operational strength.
Total assets grew to USD 213.51 million from USD 183.16 million, with investment properties at USD 158.47 million and equity rising to USD 151.73 million, supported by strong retained earnings.
The Group declared USD 2.40 million in dividends, balancing shareholder rewards with reinvestment for growth.
The commissioning of TrustProp Aluminium and BrickFusion Manufacturing is set to transform West Prop’s cost structure, profitability, and productivity.
New Plants Impact
By producing glass, aluminium, and bricks in-house, the Group reduces reliance on external suppliers, lowering procurement costs and minimising supply chain disruptions. TrustProp Aluminium ensures consistent quality and customisation for structural components like windows and facades, enhancing project aesthetics and durability while reducing material costs.
BrickFusion Manufacturing guarantees a reliable supply of high-quality bricks, critical for meeting construction timelines and maintaining standards across developments. These facilities enable economies of scale, reducing unit costs over time, particularly for large-scale projects like Pomona City and Millennium Heights.
In-house production accelerates project timelines, improves cash flow, and boosts productivity by optimising resource allocation.
Moreover, TrustProp Aluminium’s ability to serve external clients creates new revenue streams, diversifying income and enhancing profitability.
These cost savings and quality improvements strengthen West Prop’s competitive edge, enabling the delivery of premium developments at lower costs, attracting more buyers, and expanding market share.
Looking forward, West Prop is strategically positioned to capitalize on growing demand for residential and commercial real estate, leveraging TrustProp Aluminium and BrickFusion Manufacturing to support its ambitious project pipeline.
The completion of Pokugara Phase Two, Millennium Heights Block 4, and Pomona City Phases 1B and 1C will drive further growth, while the REIT-managed Millennium Heights Aparthotel appeals to diverse investors.
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