Mashhold US$15m Pomona project 57pc complete
Mashonaland Holdings (Mashhold) says the development of its US$15 million Pomona Commercial Centre remains on course and has reached 57 percent completion.
The project, whose construction started in July 2023, consists of wholesaling and flexible warehousing with 14 000 square metres of lettable space and is targeted for completion in the last quarter of this year.
Before the construction works started, the company had already leased out more than 85 percent of the property, reflecting the strong demand for such space.
OK Mart will be the anchor tenant at the complex.
Several companies are leaving Harare’s central business district (CBD), resulting in sustained growth of voids, with many corporate tenants moving to the northern suburbs, among other locations.
Mash Holdings’ acting managing director, Mr Kudakwashe Masundire, told shareholders at the group’s annual general meeting last week that revenue for the first five months of 2024 increased by 23 percent to US$2,62 million from US$2,14 million in the comparative period, despite a challenging operating environment.
“Our revenue is 23 percent up from what we recorded last year, and that improved performance has filtered into our operating profit at 24 percent.
“Our expenses, we have tried to just ensure that the growth in expenses is aligned to the revenue performance as well,” he said in a trading update.
The group’s operating profit margin stood at 48 percent, up from 47 percent in the same period last year.
During the period under review, the group’s occupancy registered a marginal 1 percentage point growth to 88 percent from 87 percent in the same period last year.
“There is an active tenant and boarding programme that we are pursuing, and we hope that by the time we close the half-year, we will also be able to further report on further growth within our portfolio occupancy,” he said.
In the March 2024 quarter, Mash Holdings said it added the Milton Park Day hospital to its investment property portfolio following the completion and handover of the facility in the last quarter of last year while the company also launched an SME retail facility at Chiyedza House in the CBD.
On the Milton Park Hospital Project, the company said construction work on the pre-leased development was completed in the last three months of 2023, and the development had been handed over to the tenant under a long-term lease with effect from January 2024.
In terms of the Mashview Gardens project, Mashhold said construction of the housing units under all phases and the boundary wall was completed in the last quarter of 2023, and site clearance was completed in the first quarter of this year.
However, the group said it remained focused and confident in implementing its portfolio diversification strategy, which will enable the group to deliver shareholder value. It said it will continue to put measures in place to manage the risk associated with new developments while also enhancing tenant experience to increase portfolio occupancy.
-herald
