WestProp’s profit soars past US$50 million despite...

WestProp’s profit soars past US$50 million despite economic challenges

Nyashadzashe Ndoro

ZIM NOW REPORTER

WestProp Holdings Limited, one of Zimbabwe’s leading property development companies, reported a significant increase in revenue and profitability for the year ended December 31, 2023, despite a challenging economic environment.

“The year 2023 presented unique challenges and opportunities for Zimbabwe's economy,” said Michael Louis, Chairman of WestProp.

“The early part of the year was characterised by a tough operating environment as economic activity slowed down following a sudden surge in inflation and volatility in the exchange rate.”

WestProp, however, said it managed to weather the storm due to loyalty of its customer base and the government’s measures to stabilise the economy.

“The Group registered significant growth towards the end of the year with a steep increase in premium sales owing to an improved operating environment,” Louis noted.

WestProp’s revenue jumped to US$16.09 million in 2023, compared to US$11.67 million in the previous year. The company also reported a net profit after tax of US$50.28 million, attributable to gains in its investment property portfolio.

“A market-based valuation of the group’s land banks inclusive of its 70% interest in Sunshine Development Private Limited done during the period gave an aggregated fair value US$250 400 590 as of 31 December 2023,” the report said.

WestProp said it is also committed to sustainability and giving back to the community.

“We have created a future focused culture through driving sustainability initiatives as envisaged in our vision of putting to ground ‘a billion bricks by 2050’,” Louis said.

“In 2023 the Group led a clean-up campaign and maintenance of the Harare Gardens in an effort to encourage environmental awareness and practices.”

The company also channelled US$142 350 in mentorship, sporting, educational and medical assistance to over 100 selected beneficiaries.

Looking ahead, WestProp has ambitious plans for growth. The company announced the rollout of several major projects in 2024, including “The Hills”, a multi-billion-dollar golf estate, and Pomona City, a US$4 billion development project.

“The US$280 million project (The Hills) has many firsts in Zimbabwe with some being: the first USGA (United States Golf Association) standard golf course, the first driving range on water, the first tennis and swimming branded academies, the first dedicated residences (in sub-Sahara Africa), the 82% green area open space development (perhaps an African record) and first 12-floor residential building,” Louis said.

WestProp is also partnering with South African investors to build Zimbabwe’s first regional mall, “The Mall of Zimbabwe”.

“We are cautiously optimistic and continue to work towards our target of putting a billion bricks in the ground by 2050,” Louis said.

“We continue to move from strength to strength and believe that our diversified portfolio and strategic initiatives position us well to capitalise on emerging opportunities and mitigate potential risks.”