WestProp to commission major projects in Q2

Victoria Falls Stock Exchange listed property firm, WestProp Holdings, says it expects to commission three of its projects in the second half of 2024 as the firm continues in pursuit of delivering decent housing within Zimbabwe’s built environment.

Pomona City sections 1B and 1C and Millennium Heights block three are expected to be commissioned in the third quarter of 2024, while Pomona flats launch is anticipated in the fourth of the year.

The remaining phases of the US$4 billion city are set to be unveiled by the first quarter of 2025.

Earlier this year, WestProp indicated that it had US$174 million worth of projects in the pipeline as part of the drive to grow its footprint in the property sector.

Already approved by the investments committee, the US$174 million includes the infrastructure constructions worth nearly US$40 million at Hills Luxury Golf Estate whose ground breaking is imminent.

Bounded by Sherwood and Harare Drive, the Hills Luxury Golf Estate is set to be one of the best features in the City of Harare.

It will become the second golf estate in Harare after Brooke.

In the first quarter update to March 2024, WestProp Holdings finance director Simbarashe Kadye, indicated that WestProp Holdings has identified several significant projects planned to run concurrently throughout 2024.

He said these developments are currently in the planning and implementation phases, with ground breaking for The Hills scheduled for the second quarter of 2024, along with civil works and a US$ 10 million upgrade of the Golf Course.

“WestProp has initiated the development of two multi-billion-dollar projects, Pomona City, a visionary “City within a city”, and “The Hills”, an esteemed premier golf estate. The group plans to complete the infrastructure for Pomona City sections 1B and 1C in the third quarter, followed by the launch of Pomona flats in the fourth quarter this year.

“The remaining phases of the US$4 billion city are set to be unveiled by the first quarter of 2025.

Additionally, WestProp Holdings will officially launch its Millenium Heights state-of-the-art Gatehouse in the second quarter of 2024, with Block three scheduled for handover in the third quarter of 2024,” said Kadye.

Although cautious, the group said it was optimistic that its diversified portfolio and strategic initiatives have positioned it favourably to leverage emerging opportunities while effectively mitigating potential risks.

The property firm commended the government for the recent introduction of the Zimbabwe Gold “ZiG” which is backed by a composite basket of foreign currency and precious metals held as reserves by the central bank.

WestProp Holdings Limited chairman Michael Louis is on record saying the company has a pipeline of projects that would change the face of the local real estate sector.

“As chairman, I believe that we cannot take WestProp to where we want to go alone. We have to have creative thinking of the best minds on how to raise funds,” said Louis.

Operationally WestProp witnessed an 11,54 percent revenue growth to US$ 7 million in the first quarter ahead of US$6,3 Million realised in the corresponding period last year.

The revenue growth was credited to the Group’s premium development, Pokugara Residential Estate Townhouses, which generated US$5 066 950 in sales translating to 72 percent of the total revenue.

Operating profit closed the first quarter period at US$1,7 million, a 14,3 percent decline from US$1,9 million posted in the same quarter of the previous year primarily driven by the rise in operating expenses.

However, this decline in operating profit trend is expected to be to align with projected sales growth of US$50 million by the end of fourth quarter this year.

Operating expenses grew by 27 percent to US$1,4 million ahead of US$1,1 million from the previous quarter

According to WestProp, this increase reflects the significant expansion in the Group’s operations as it prepares for upcoming developments scheduled for commissioning from the second quarter going forward.

The firm declared a US$ 857 143 for the first quarter of 2024.-ebsunsweekly