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Nelson Gahadza-Senior Business Reporter

Mashonaland Holdings says the group’s occupancy level within group properties increased to 83 percent in May 2022 from 81 percent in January this year driven by new tenants added to the portfolio under the Chiyedza House flexi-leasing initiative.

In April this year, the group indicated that it had embarked on flexi-letting at Chiedza House, its central business district commercial property that was recently renovated, aimed at densifying occupancies in its building properties.

Initially, the group wanted to start the concept at ZB Life Towers in 2019 but was affected by the Covid 19 pandemic which disrupted business.

Mr Kudakwashe Musundire, the group’s chief financial officer in a virtual annual general meeting presentation said the rental collections percentage had remained high at 95 percent as the company seeks to recover rentals billed on time.

The group’s occupancy trend had remained constant at 81 percent in January 2022 up to April 2022 continuing from the 2021 full year occupancy, which was also at 81 percent.

Mash Holdings is a property investment and development company in Zimbabwe, providing solutions to the retail, commercial and industrial sector.

The office/retail division acquires, develops and leases warehouse and factories while Pure Retail acquires, develops and leases retail outlets; with other divisions involved in acquiring, letting and managing residential and specialised property as well as undeveloped land.

According to Mr Musundire, between January and May 2022, revenue increased by 98 percent in historical cost terms with the increase above cumulative inflation of 59 percent over the same period.  

“Revenue growth has been supported by improved occupancies which grew from 81 percent to 83 percent,” he said.

He added that revenue growth was also supported by rent reviews done periodically to ensure sustainability of business operations.

The group’s revenue growth trend continued from January 2022 six percent, before jumping to 27 percent in February. The trend continued in March and April growing 46 percent and 71 percent respectively, before reaching 98 percent in May.

Mr Musundire said the group’s property development projects were currently on-going and at different stages of implementation.

In 2021, the group launched the Mashview Gardens, Bluffhill,  a 25 unit Bluffhill housing development.

“Following launch, all the units have been pre-sold off plan and construction is in progress and construction is targeted for completion in Q4 2022,” said Mr Musundire. The project has a total value of US$3.6 million.

At the Milton Park Medical facility, Mr Musundire said site works commenced in June 2022. The project has a development budget of US$3 million.

At Chiyedza House, he said the company introduced flexi-leasing office space on the Mezzanine Floor in 2021 and the floor facility is fully let while the first floor is 74 percent full.

“The company is expanding the model to 3 rd floor,” he said. On Charter House disposal, the company received a compelling offer to acquire the property in December 2021.

Mr Musundire said the company had entered into an agreement to dispose of the property for US$7,4 million and had received deposits towards the disposal value.

“Disposal of the property will support the diversification thrust through reducing the CBD footprint, deployment of proceeds towards new acquisitions and developments,” he said.

The group also has strategic acquisitions in Stand 489 Vainona (Pomona) which is a 4ha site at the corner of Harare Drive and Alpes Road for a consideration of US$3.9 million.

The development concept consists of wholesaling and flexible warehousing. According to Mr Musundire, 50 percent of the development has been pre-leased to the anchor tenant, a leading national retailer.

The group also acquired a 2ha site along Borrowdale Road for a consideration of US$3.9million and the company plans to develop a modern office park.