Pomona surge and land banks lift Masholds portfolio to US$94.7m

BUSINESS REPORTER

Mashonaland Holdings Limited (Masholds), a leading property investment and development company, has grown its investment property portfolio to US$94.7m, up from US$91.6m in 2024, buoyed by the completion of the Pomona Commercial Centre and the strategic value of its expansive land banks.

The group’s chairperson, Engineer Grace Bema, said the portfolio’s upward revaluation reflects both capital appreciation and fresh investment, underpinned by strong demand in emerging growth nodes such as Pomona.

“The investment property portfolio was valued at US$94.7m as at December 31, 2025, compared to US$91.6m in 2024. The growth in the asset base was due to a 3% capital gain and investment of US$1.2m. The capital uplift on investment property was largely recorded on the group’s land banks and the Pomona Commercial Centre,” Bema said.

The Pomona Commercial Centre, completed in December 2024, is already gaining traction, with occupancy reaching 60% and a firm leasing pipeline expected to drive full uptake by 2026.

In a further show of confidence in the property market, Masholds moved to deepen its land bank in the fourth quarter of 2025, entering into an agreement to acquire a 26.7-hectare site earmarked for the development of 445 medium-density residential stands near Shurugwi, approximately five kilometres northwest of the town centre. Project planning is scheduled to commence in the first quarter of 2026.

The group’s pipeline of developments continues to underpin expectations of further portfolio growth. During the year under review, Masholds completed and disposed of cluster residential stands along Greendale Avenue, delivering fully serviced stands with approved housing plans to buyers. Servicing works were finalised in August 2025, with handovers completed within the year.

In Greendale, the company also acquired residential land on Coronation Avenue, where it plans to develop 30 upmarket apartments. All statutory approvals have been secured, with construction expected to begin in the first quarter of 2026.

Beyond traditional property segments, Masholds is also positioning itself to tap into Zimbabwe’s informal economy. Through its Chiyedza House SME centre initiative, the group is providing tailored infrastructure for emerging businesses.

The facility has been expanded to include 90 self-contained, fully furnished offices catering to small and medium enterprises across various sectors, alongside more than 40 retail shops on the ground and mezzanine floors. The development has been well received, maintaining average occupancy levels above 90%.

Bema noted that Zimbabwe’s property market presents a mixed outlook, with residential and selected commercial segments showing resilience, while the central business district (CBD) continues to lose appeal.

“The residential and select commercial sectors continue to record positive momentum. Growth is being underpinned by rapid urbanisation, sustained investor interest, and government initiatives aimed at improving housing delivery. However, the development of supporting infrastructure has not kept pace with the growth of new residential projects,” she said.

This mismatch, she added, has intensified infrastructure deficits and triggered increased regulatory scrutiny from the Ministry of Local Government and Public Works, particularly around land use and zoning approvals.

“In contrast, the CBD office sector remains subdued, with reduced demand driven by changing business models and cost pressures. This has led to an erosion of rental yields within the CBD office sector. These trends persist in a constrained macroeconomic environment, marked by limited liquidity and high borrowing costs. As a result, property development and mortgage activity remain subdued,” Bema said.

Looking ahead, she stressed that the sector’s medium- to long-term trajectory will hinge on macroeconomic stability, improved access to capital, and coordinated infrastructure development to support urban expansion.

Financially, Masholds delivered solid performance during the period, with revenue rising 13% to US$8.1m from US$7.2m in 2024, largely driven by project income from the sale of serviced Greendale stands.

Rental income increased by 12.6% to US$6.3m from US$5.6m, supported by improved occupancy levels, particularly in the second half of the year at Pomona Commercial Centre and across the broader portfolio.

Operating profit edged up 3%, weighed down by higher operating costs linked to property maintenance and preparations for new lettings concluded towards year-end.

Portfolio occupancy improved marginally from 88% to 89%, while the group recorded a 3% capital gain, translating to a US$2.2m fair value uplift on investment property.

Finance costs for the period stood at US$919,264, largely associated with borrowings used to fund ongoing capital development projects.

Profit after tax rose 8% to US$4m from US$3.7m in 2024, supported by revenue growth and investment property gains.

Going forward, Masholds says it will continue to leverage opportunities in the housing market while repositioning parts of its portfolio, particularly within the CBD, to align with evolving tenant preferences and shifting business dynamics.

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