Online Reporter
Business Reporter
Mashonaland Holdings Limited says the subdivision of space at Pomona Commercial Centre to accommodate a broader tenant mix is helping accelerate leasing, with the property on course for full occupancy before year-end.
The development is emerging as a key driver of the property group’s strategy to improve portfolio occupancy and strengthen rental income in a market where tenants are increasingly favouring conveniently located, affordable and flexible commercial space.
In its half-year results for the six months ended June 30, 2026, the group said leasing at Pomona Commercial Centre had advanced following the reconfiguration of space to accommodate a wider range of tenants.
“Leasing at Pomona Commercial Centre progressed during the period following the subdivision of space to accommodate a broader tenant mix; as at half-year, the property had achieved 75 percent occupancy,” said board chairperson Eng George Bema.
“The property is on course to achieve full occupancy before the end of the year.”
The comments underline the importance of tenant mix and space configuration in the current property market, where demand is increasingly concentrated in developments that can offer accessibility, convenience and affordability.
According to Eng Bema, the property market remained resilient during the first half of the year, although performance varied according to location and asset class.
“Tenant and investor demand was increasingly concentrated in well-located properties offering affordability, accessibility, reliable utilities and flexible space,” he said.
The chairperson said convenience retail and neighbourhood commercial developments continued to attract demand as consumer patterns changed and commercial activity became more decentralised.
This has benefited properties such as Pomona Commercial Centre, where the subdivision of space has allowed Mashonaland Holdings to broaden its tenant base rather than relying on a narrower mix of occupiers.
The group’s overall portfolio occupancy consequently improved to 89 percent in June, from 88 percent in the previous period, while rental collections remained satisfactory at 93 percent.
Revenue for the six months rose 7 percent to US$3.91 million, from US$3.66 million in the comparative period, supported by additional tenant onboarding and growth in property-services income.
Operating profit increased 27 percent to US$1.93 million, while profit after tax rose 14 percent to US$1.80 million.
The performance comes against a property market facing several structural constraints, including high construction costs, infrastructure requirements and limited access to affordable long-term funding.
These pressures, Eng Bema said, were making phased, demand-led developments and the refurbishment or repositioning of existing properties increasingly important.
“Development activity remained constrained by high construction costs, infrastructure requirements and limited access to affordable long-term funding,” he said.
“These conditions favour phased, demand-led developments and the refurbishment or repositioning of existing properties where commercially viable.”
The company is pursuing this approach across its development pipeline, with the Pomona project focused on leasing while other projects move towards implementation.
At 126 Coronation Drive in Greendale, civil works for a proposed 30-unit residential cluster development had reached 95 percent completion by the end of June, with the project progressing through the statutory approval process.
The Shurugwi Residential Stands Project also recorded progress, with surveying completed and engineering work under way. The group plans to commence servicing and phased pre-sales during the second half of the year.
Eng Bema said the company would remain focused on improving tenant satisfaction and retention while increasing occupancy across its portfolio.
“The group enters the second half of the year with a strong focus on enhancing tenant satisfaction, improving tenant retention and increasing occupancy across the portfolio,” he said.
“Priority will continue to be given to strengthening property management and leasing initiatives to support sustainable rental income growth.”
He said the planned commencement of pre-sales on development projects would be an important step towards commercialising the group’s pipeline.
For Pomona, however, the immediate priority is to convert the remaining vacant space into productive, income-generating premises.
With occupancy already at 75 percent at mid-year, the group is betting that its broader tenant mix and demand-led approach will allow the commercial centre to reach full occupancy before the end of 2026.
The strategy reflects a broader shift in Zimbabwe’s property sector towards flexible developments capable of responding to changing tenant requirements, rather than simply adding conventional space to an increasingly competitive market.
