Almot Maqolo, Staff Writer 
MASHONALAND Holdings (Mash Holdings) says it will set up a new office park along Borrowdale Road in Gunhill, Harare as part of its portfolio diversification strategy.
Without divulging specifications with regards to the cost of the entire project and timelines for the commencement of construction, the ZSE-listed firm said it has already paid US$3 million to secure the land.
Across the city, the demand for suburban office parks is rising as more skilled workers move back to the suburbs due to concerns about disorderliness in the Central Business District (CBD), mainly characterised by noise pollution, high traffic congestion and limited parking space.
Mash Holdings’ property portfolio has about 30 buildings that it is letting out, but the flagship buildings are ZB Towers and Chiedza House.
In an interview with The Financial Gazette, Mash Holdings’ acting managing director Kudakwashe Masundire indicated that they have looked at what the market is saying in terms of tenants.
“Blue-chip tenants, some are looking to exit CBD, but what we have been trying to do is identify pockets of land that would speak to the tenants’ needs, not necessarily only now but in the future.
“So, with that in mind, this is why we recently acquired a piece of land along Borrowdale Road in Gunhill, which we are looking to eventually develop into an office park in the future,” he said.
“The piece of land that we have acquired for a site along Borrowdale Road costs US$3 million. We are already fully funded and paid off on our balance sheet. So, this is a piece of land that we think will be part of the development pipeline that we will execute in the future,” Masundire added.
Construction work is expected to start next year.
There is continued growth, especially in Harare’s northern suburbs as properties are being repurposed to offer not only office space in the suburbs but also to offer some tourism facilities.
Analysts say this will continue to be a green shoot as the market continues to look at opportunities to grow outside of the traditional markets that real estate operators have operated in.
This comes as Mash Holdings expects to grow its total asset portfolio by around 50 percent to reach US$120 million in the next five years.
The property developer has a five-year diversification strategy expected to boost its asset portfolio from the US$80,7 million it recorded at the close of 2023 to US$120 million by 2027. This was a 4,9 percent increase from the US$76,9 million realised in 2022.
Under the strategy, Office Park is expected to contribute 23 percent to the group’s target mix.
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