Nyashadzashe Ndoro
CHIEF REPORTER
Mashonaland Holdings Limited, a leading property developer in Zimbabwe, released its trading update for the quarter ended March 31, 2024, showcasing positive growth amidst a challenging economic environment.
“The first quarter was characterized by anticipation surrounding the new monetary policy measures introduced by the Reserve Bank of Zimbabwe,” said the company in a statement, referring to the local currency depreciation and inflationary pressures.
“While interest rates have been reduced in response to a lower inflation outlook, foreign currency shortages persist, creating uncertainty over the long-term effectiveness of these policies.”
Despite these challenges, MHL reported a 30% increase in revenue, driven by an expansion of their lettable space portfolio.
The company highlighted the completion of the Milton Park Day Hospital and the launch of an SME retail facility at Chiyedza House as key contributors to this growth.
“We’re pleased to announce that 74% of our rental income is now collected in US dollars,” the statement continued, emphasising a positive development that helps the company preserve value from its leases. This strategy is further reflected in a 55% increase in operating profit.
MHL also provided updates on its ongoing property development projects.
Construction of the Pomona Wholesale Centre, a 14 000sqm warehousing facility, is progressing well with an anchor tenant secured and 60% pre-leased according to the company. The Milton Park Hospital project has been finalised and handed over to the tenant under a long-term lease.
Milton Park Hospital Project: “Construction work on the pre-leased development was completed in Q4 2023. The development has been handed over to the tenant under a long-term lease with effect from January 2024.”
Mashview Gardens: “Construction of the housing units under all phases and the boundary wall were completed in Q4 2023, and site clearance completed in Q1 2024. Final handover inspection are in progress to enable project handover.”
Looking ahead, MHL expressed confidence in its portfolio diversification strategy, which they believe will deliver value to shareholders. The company also highlighted its commitment to managing risks associated with new developments and enhancing tenant experience to improve portfolio occupancy.
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