Online Reporter
Nelson Gahadza
Mashonaland Holdings (MashHoldings) says the property market is forecast to remain segmented, with sustained demand for US dollar-linked leases in prime and suburban locations and industrial/logistics assets benefiting from mining and trade.
As a result, the company said development activity is likely to remain cautious, focused on high-yield and affordable housing projects.
“The company will remain focused on commercialising its investments and making investments in high-demand developmental projects,” said Engineer Grace Bhema, the company’s chairperson, in a statement of financials for the half year ended 30 June 2025.
Mash Holdings is a property investment and development company in Zimbabwe, providing solutions to the retail, commercial and industrial sectors.
According to the Ministry of Finance, Economic Development and Investment Promotion, the real estate sector is set to record a 5,4 percent growth in 2025, up from 2,1 percent in 2024, spurred by demand for new spaces which offer occupier convenience.
The sector’s growth is also supported by investors seeking capital preservation and balance sheet hardening.
Eng Bhema said the group’s retail segment’s performance for the interim period was mixed. She said well-located shopping centres in suburban areas remain resilient, with tenants seeking space in strategic locations which offer visibility and access to markets.
“CBD retail space is now largely marked by informal traders in high-traffic locations; property owners have responded to this trend by reconfiguring CBD retail spaces to attract higher yields,” she said.
Eng Bhema noted that the office segment remains under pressure, and the segment’s performance reflects the broader economy, which is now increasingly dominated by informal traders.
She said the CBD office continues to record high vacancies and high service charges; as a result, demand is shifting toward smaller, energy-efficient office spaces in suburban nodes.
“While the sector is on a growth trajectory, the sustenance of the growth trend will depend on continued investment into supporting infrastructure by authorities, policy consistency and economic stability to ensure manageable risk for property investors,” said Eng Bhema.
During the half-year period under review, the company’s revenue improved by a marginal 1 per cent to $3,66 million above the prior year.
Rental income increased by 15 per cent from $2,7 million to $3,1 million due to the onboarding of new tenants at the Pomona Commercial Centre following its completion in Q4 2024.
“During the period, the company managed to retain its tenants, and thus the occupancy rate was maintained at 88 per cent for the rest of the portfolio.
“Rental collections remained strong at 92 per cent and in line with trends from 2024,” said Eng Bhema.
She noted that while the company did not earn significant development projects revenue for the first half of the year, its performance in the second half of the year is set to be supported by the completion of the Greendale cluster stands project, which has now been fully sold off plan.
In the period under review, the Group reported a profit after tax of $1,57 million, a 36 per cent decrease from the previous year’s profit of $2,38 million, largely due to fair value losses on investments held for trading.
In terms of property development projects, Eng Bhema said construction works on the Pomona Commercial Centre Development commenced in the 3rd quarter of 2023, and the development achieved practical completion in Q4 2024.
She said a total of 6,500 m² has now been leased out, onboarded tenants have commenced trading, and the company is engaging with potential tenants for further lettings at the property.
The development concept consists of wholesaling and flexible warehousing with 14,000 sqm of lettable space.
The 12 Van Praagh Day Hospital project was completed and handed over to the tenant, and the development started earning rentals under a long-term lease from the 1st quarter of 2024.
The facility has now been opened for operation, effective 1 July 2025.
On the Greendale Cluster-Stands, services installation commenced in May 2025, and all services comprising sewer and water reticulation, roads and stormwater drains have been installed.
“The project is forecast to be completed in August 2025, and the cluster stands have now been fully sold off plan,” said Eng Bhema.
Peter Tanyanyiwa