BUSINESS REPORTER
Listed brickmaker, Willdale Limited, is seeking shareholders’ approval to develop 178.2 hectares (ha) of idle land in Mt Hampden area into residential, commercial and industrial stands, Business Times can report.
The shareholders will cast their votes at an extraordinary general meeting to be held early April.
In a circular to shareholders, Cleopas Makoni, the Willdale Limited board chairman, said the move will unlock value for the shareholders.
“In order to increase shareholder value , management and the board of Willdale Limited, have constantly been seized with exploring the possibilities of unlocking value from undeveloped and idle land held by the company,” Makoni said.
He added: “To this end, in lieu of outright disposal of land, the company considers it to be more value accretive to enter into partnerships for the development of undeveloped idle land that has been identified measuring mica 178.2 ha.”
As a result, Willdale has signed two development agreements, one with Zusammen Private Limited for four pieces of land totaling about 123.6 ha at Haydon in Mount Hampden, and another with Melrose Construction Private Limited, trading as Integrated Construction Projects, for the land at Kinvarra that will be sub-divided into roughly 42 ha.
Additionally, Willdale is in talks with potential partners to create Christmas Gift in Gweru.
The land is valued at US$3m, but the company believes it can fetch more money if it develops the land first, and then sells stands.
The company used to extract clay for bricks from the area, but the land has gone idle and is run over by illegal brickmakers. Willdale is in court to evict them.
Willdale expects to earn US$16.6m from all the sales, before costs.
“Profit on the disposal of stands of US$16,576,412 less capital gains of US$976,169, selling costs of US$780,935 and transaction costs of US$60,000 plus a decrease in deferred tax liability of US$147,348 and transfer from revaluation reserve of US$1,072,072.”
The company intends to purchase a new US$3m factory with some of the proceeds, something it really needs to catch up to its successful rivals.
