MASHONALAND Holdings (Mash Holdings) says it remains focused on implementing its portfolio diversification strategy to sustain growth.
The property investment and development firm said the occupier sub-market continues to suffer from high voids in the CBD office sector due to sluggish economic activity.
Zimbabwe has been experiencing a challenging economic environment coupled with liquidity constraints, inflationary pressures and exchange rate disparities.
“Among other macro-economic pressures, the property sector remains affected by distortions in exchange rates and inflationary pressures. As a result, most property owners are engaging tenants with a view to converting Zimbabwe dollar denominated leases to United States dollars to enable value preservation,” the firm’s company secretary, Egnes Madhaka, said in a trading update.
Madhaka said pockets of growth continue to be witnessed within the retail and residential sectors with an emphasis on quality offerings.
Consequently, development activity and sales transactions are skewed towards these two sectors attracted by encouraging space absorption rates and yields.
The industrial segment, however, remains affected by power supply challenges which have impinged on the sector’s ability to improve its capacity utilisation and this in turn has affected the sector’s ability to generate optimal yields.
In the first quarter ended March 31, 2023, Mash Holdings’ revenue increased by 481 percent driven by an increase in space absorption in the portfolio, with overall occupancy increasing from 81 percent to 87 percent.
The revenue increase was also driven by regular rent reviews being implemented to preserve value.
As part of its property development projects, the group said Milton Park Day Hospital is progressing as planned with emphasis on cost, time and quality management.
Under the Pomona Wholesale Centre project, the anchor tenant has been secured and 60 percent of the development has been successfully pre-leased.
“Pre-construction works including demolition of existing structures and designing of the new buildings is complete. Tendering works are underway and construction works are set to commence in the third quarter of 2023,” Madhaka said.
The Mashview Gardens project’s construction of housing units under phases 2 and 3 is ongoing and the units are due for handover in June 2023 in line with the pro
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