• WestProp Holdings has achieved a net profit of over US$50 million, sets the stage for the launch of two multi-billion-dollar projects in 2024
  • Pomona City, an independent "city within a city," and The Hills, a luxury living development, are set to reshape Zimbabwe's future by offering modern living and commercial spaces
  • These projects demonstrate a significant investment in the real estate sector, with the potential to stimulate economic growth, attract investors

Harare- WestProp Holdings, a leading real estate company in Zimbabwe, has achieved a significant milestone, surpassing a net profit of over US$50 million for the full year ended 31 December 2023 to US$50.28 million. This sustained profitability has paved the way for the simultaneous launch of two multi-billion-dollar projects in 2024.

Established in 2007, WestProp offers a wide range of property services, including property development, sales, leasing, and property management. It holds an impressive portfolio of prime land and properties in various locations across Zimbabwe, such as Harare, Bulawayo, and Victoria Falls. The company's property development projects encompass residential, commercial, and industrial spaces. It was listed on the Victoria Falls Stock Exchange on April 28, 2023, with its financial year ending in December 2023.

The first of these transformative developments is Pomona City, an ambitious endeavor to create an independent "city within a city." Integrating residential, commercial, and industrial spaces, Pomona City will offer modern flats and develop the necessary infrastructure to support its growth. The second project, The Hills, is set to redefine luxury living in Zimbabwe. Featuring a world-class golf course, high-end residential buildings, and innovative amenities like a USGA and a unique driving range on water, The Hills prioritizes green spaces, dedicating an impressive 82% of the area to open green spaces, setting new standards for sustainable urban development in the region.

With these multi-billion-dollar developments, WestProp Holdings demonstrates a significant investment in the real estate sector, aiming to create modern, high-quality living and commercial spaces that rival global standards. The projects have the potential to stimulate economic growth, attract both local and international investors, generate employment opportunities, and enhance the overall infrastructure and amenities available to residents.

The groundbreaking ceremony for these projects is scheduled for May 2nd. The $280 million project introduces several pioneering features to Zimbabwe, such as the first USGA-approved golf course, the first driving range on water, and the first 12-floor residential tower.

To ensure successful execution, WestProp has assembled a team of top professionals from South Africa, Dubai, Spain, and Portugal to oversee the design and technical aspects of the projects.

The group plans to complete the roads for Pomona City 1B & 1C in May and subsequently launch Pomona flats later this year. The announcement of the remaining $4 billion city is expected in the first quarter of 2025.

It has obtained approval to commence construction of its first 5,500 square meter Head Office in Borrowdale by the end of May this year. They are also in negotiations for "The Mall of Zimbabwe," the country's first regional mall.

Another positive investment for the group is its first manufacturing division, which produces high-quality aluminium door and window frames in-house, surpassing the standards set by local producers.

Meanwhile, WestProp had a current projects pipeline worth US$174 million in sales, with an anticipated gross profit of US$68 million. This indicates that the company is on track to deliver sales of US$50 million per year with a gross profit surpassing US$20 million from 2025 to 2027. Consequently, the projected annual operating income before taxes (PBT) is expected to range from US$12-14 million.

Operating expenses for 2023 amounted to US$5.18 compared to US$2.49 in the previous year, reflecting an increase of US$2.68. This rise was primarily driven by expenses related to the Initial Public Offer (IPO) and Victoria Falls Stock Exchange (VFEX) listing requirements, which necessitated ad hoc public relations, advertising, marketing, audit, legal, and other professional fees, all of which were expensed in 2023.

Despite that, liquidity improved by 209% during the period, with cash and equivalents amounting to $2.66 million as of December 31, 2023, compared to $860.18 thousand in the previous year. The company concluded the year with a healthy current ratio of 3.93 times.

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