Mashonaland Holdings posts ZWL$3.4 billion revenue...

Mashonaland Holdings posts ZWL$3.4 billion revenue from the Mashview Housing Project

Audrey Galawu

Property Investment and Development company, Mashonaland Holdings has revealed that the group earned revenue of ZWL$3.4 billion for the year ended December 31, 2023 from the Mashview Gardens housing project as construction works on the project were completed.

The construction of the housing units under phases 1, 2 and 3 has also been completed.

“Site clearance and road resurfacing have now been completed and processes are underway to handover the units to beneficial owners,” the group's chairman Grace Bema said.

Mashview Gardens is one of the key projects being undertaken by the group, along with the Pomona Wholesale centre and the Milton Park Hospital Medical facility.

In the third quarter of the year, the group also commenced construction works on the Pomona Commercial Centre Development project.

The development concept of the project consists of wholesaling and flexible warehousing with 14,000sqm lettable space.

The group revealed that 60% of the development has been pre-leased.

For the year under review, Mashonaland Holdings posted a profit after tax of ZWL$324 billion up from ZWL$83 billion in 2022.

The improved profit position was realised due to the improved operating profitability and a 99% capital gain recorded on investment properties.

Operating before fair value adjustments increased by 422% to ZWL$88.6 billion supported by revenue growth.

Reporting on market performance for the year, Bema said property developers have opted to prioritise residential and building repurposing projects, which can deliver superior returns to counter lack of appropriately priced long-term development capital.

"The property market performance continues to reflect the broader macroeconomic issues affecting the economy. United States Dollar liquidity shortages in the formal sectors of the economy have contributed to limited long-term capital to support property development projects.

“Increasing construction costs, exacerbated by high lending rates and increased tax burden emanating from recent changes to fiscal regulations, have hindered the commencement of development projects required to support occupier market demand for new and modernised facilities especially in the retail and out of CBD segments."

Commenting on the property market performance, managing director, Ginson Mapfidza said the demand for commercial space remains weak, particularly in the CBD office segment.

“The segment continues to be impacted by low occupancy levels, sub-market rents, unattractive yields, and high occupancy costs emanating from obsolete inefficient building infrastructure.”