PROPERTY developer, Mashonaland Holdings Limited (Mashold), recorded a 17% rise in revenue to US$5,17 million for the nine-month period ended September 30, 2024, as its Milton Park Day Hospital Project joined its investment property portfolio.
In the comparative 2023 period, revenue was recorded at US$4,42 million.
The Milton Park Day Hospital Project was completed in September 2023, at a cost of US$3 million with the lease for the property having commenced in January.
In its trading update for the quarter ended September 30, 2024, Mashold presented its unaudited results for the nine-month period.
It said the property market sector was experiencing varying growth and performance patterns due to volatile market conditions owing to liquidity constraints.
“Revenue increased by 17% driven by the addition of Milton Park Day Hospital into the investment property portfolio following completion and handover of the development,” the property developer said.
“During the period, the company increased its US$ business contribution to 80%. Further, rental reviews continue to be made to ensure the business retains value from its leasing arrangements.”
Mashold said its overall portfolio occupancy remained unchanged at 89%.
- Mashold revenue up 17% in 9 months
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“Operating profit increased by 46% driven by the revenue growth. Investment property increased by 10% due to capital expenditure invested in the ongoing Pomona Commercial Centre development project,” the property developer added.
The firm saw its investment property reach US$88,39 million by September from the 2023 comparative of US$80,66 million.
Mashold revealed that its Pomona Commercial Centre development comprised a wholesaling unit and flexible warehousing constituting 14 000 square metres of lettable space.
“The project commenced in July 2023; the project has now achieved a 90% stage of completion. The project is on course to be delivered in November 2024. 65% of the development has been pre-leased,” the firm said.
“Greendale Cluster Housing Stands: The company has applied for regulatory approvals to enable pre-sales on the planned development project. A development permit has been secured for the project and an environmental impact assessment is currently being carried out.”
It said that pre-sales on the project were planned to commence towards the end of the year once all regulatory approvals have been secured.
Another major development included the Mashview Gardens, Bluff Hill Harare that involved a 25-cluster housing project.
The firm’ property portfolio has retail taking up 6%, office/retail mixed use (47%), residential (3%), industrial (43%) and specialised (2%).
In the nine-month period under review, occupancy levels remained flat at 89%, compared to the 2023 comparative, while collections were down 1 percentage point to 93% from last year.
Rental yield also remained flat during the period at 8%.
Mashold’s retail properties were worth US$7,08 million, office (US$56,35 million), industrial (US$11,66 million) and residential and health (US$10,92 million) as of the end of 2023. It also has a land bank worth nearly US$20 million.
“The group is optimistic that continued implementation of its portfolio diversification strategy will enhance business growth and create value for shareholders,” Mashold said.
“The group continues to review its risk management strategies and operational efficiencies to ensure continued growth.”
