A billion bricks by 2050 vision starts at WestProp lists on VFEX

Property firm, WestProp Holdings, on Friday finally listed its shares on the Victoria Falls Stock Exchange (VFEX), becoming the first real estate firm to trade on the US dollar-denominated bourse.

WestProp Holdings, that is driving the agenda of a billion bricks by 2050, became the 12th company to list on the VFEX, but the first to do so by way of an Initial Public Offering (IPO).

The company’s shares will start trading on the bourse today, as it seeks to raise US$300 million from the 30 million shares to be offered at US$10 each under the IPO.

WestProp chief executive officer, Kenneth Sharpe said despite the IPO seeking to raise US$30 million for real estate development, the US$3,3 million the firm has already raised through preference shares was a first step into realising their goal.

“The IPO was set to raise $30 million in capital to accelerate the development of the company’s existing projects such as Pokugara Residential Estate, Millennium Heights, Pomona City, The Mall of Zimbabwe, Millennium Heights Office Park and the Hills Golf Estate.

“But we raised US$3,3 million and we will be coming back to the market with a fresh round of preference shares,” he said.

This, he said, was in line with the company’s 2050 vision of one billion bricks resulting, which the company says will create thousands of jobs and properties valued at US$5 billion.

“As we have now gone public, the board is convinced the time is now for individuals to be part of a bigger family to start investing in their long-term future and especially encourage the youth to start participating,” Sharpe added.

The company has sunk 57 million bricks in projects and is going to go ahead with three self-funding projects.

“We are going to go ahead with three projects and suspend the Mall of Zimbabwe and the Warren Hills, which will be begun at the end of the year and after the second preference shares offer, respectively,” Sharpe said.

The company is currently working on the Millennium Heights block 3, which is 30 percent done, with a pace of one floor per month. Block Four is already being sold with Block Five going on sale later in the month.

Block Four construction is expected to begin in the fourth quarter of the year.

In Pomona, WestProp has 150 serviced stands with 550 stands currently being serviced and a further 300 or so being done by the end of the year.

WestProp Holdings board chairman, Dr Micheal Louis applauded the listing on the VFEX and said it meant the company is now part of the bigger part of the country and no longer a family business.

“Today underlines the story of how much-unfinished business we have in Zimbabwe with continued hunger, unemployment and economic emancipation. This should no longer be the case after 30 years of isolation,” he said.

WestProp Holdings believes that the country owes something more to its people and it will be part of the journey.

“Today is about listing a grand vision and economic framework in line with the National Development Strategy to achieve and empower a significant upper middle-income society by 2030 and to chart a new transformative and inclusive development agenda, with no one left behind.

“To sketch the African landscape of our potential as a continent and country, we know Zimbabwe is part of the African Continental Free Trade Area (AFCTA),” Dr Louis added.

The AfCFTA is the largest free trade area in the world with 54 out of 55 countries that signed the agreement. It consists of 1,3 billion people across 55 countries. The free trade area has a combined gross domestic product (GDP) $3,4 trillion and has the potential to lift 50 million people out of poverty.

AfCFTA is expected to boost African income by US$450 billion by 2035, a gain of 7 percent.

“Our only option and mandate as a country to make use of this incredible timeous opportunity is if private business collaborate and partners with the government. There is no other way,” Dr Louis said.

WestProp applauded the government for creating a conducive environment to stimulate economic growth and infrastructure development.-ebusinessweekly