- OK Zimbabwe to sell 7 non-core properties to raise US$10.5 million in net proceeds
- Properties include vacant stands, suburban outlets, a warehouse, and a flagship Gweru store
- The group owed suppliers about US$24 million as of February 2025
Harare - OK Zimbabwe has sold shareholders on a US$10.5 million property-disposal plan following a pivotal vote at an Extraordinary General Meeting (EGM), marking the country’s largest grocery retailer’s latest effort to stabilize operations amid deepening financial strain.
The company received approval to dispose of several immovable properties as part of a broader strategy to raise capital urgently required to resolve supplier arrears, restock shelves, and rebuild confidence in the business.
The disposal, which forms the first step in a larger US$30.5 million recapitalisation agenda, is intended to provide immediate working capital relief and ease mounting liabilities on the balance sheet.
Under the ordinary resolution passed by shareholders, OK Zimbabwe’s board has been empowered to sell up to seven non-core properties.
These include two vacant commercial stands in Borrowdale (Liberation Legacy Way) and Southlea Park (Harare-Masvingo Highway), a warehouse in Workington, Harare (Birmingham Road), three suburban outlets OK Glen View, OK Malvern and OK Mbuya Nehanda and a flagship store in Gweru at the corner of Main Street and Livingstone Avenue.
The transaction is expected to raise US$10.5 million in net proceeds after accounting for related costs. The board is mandated to identify and negotiate with potential buyers in accordance with relevant laws, with the added flexibility to sell to related parties provided the transaction remains at arm’s length and delivers fair market value.
The urgency of this two pronged capital raising strategy stems from a cocktail of operational and macroeconomic pressures that have hampered OK Zimbabwe’s performance over the past year.
In February 2025, the retailer owed suppliers approximately US$24 million and had accumulated over US$5 million in other unpaid liabilities.
These debts have disrupted supply chains and led to widespread stock outs across many of its 72 branches. Several stores have either closed or scaled back operations, including five outlets shuttered entirely due to unprofitability.
Compounding these challenges is Zimbabwe’s volatile currency landscape. The government-regulated exchange rate set by the Reserve Bank of Zimbabwe (RBZ) has created additional stress for formal retailers such as OK Zimbabwe.
Looking ahead, the group remains cautiously optimistic as it moves to finalise the property disposals within the 12 month mandate granted by shareholders, with management hopeful that some sales will conclude before year end.
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