Chronicle Editor
Nqobile Bhebhe, Senior Business Reporter
WEST Properties Holding Limited which is set to list on Victoria Falls Stock Exchange (VFEX) in April says it is implementing a strategic plan of creating real estate valued in excess of US$1 billion and up to US$5 billion on its land banks.
The real estate firm announced on Monday that it plans to list on the US dollar denominated bourse on 28 April via an Initial Public Offering.
According to the firm, the Preference Share Issue and Ordinary Share Offer were approved by a resolution of the board meeting held on 22 February 2023 and approved by the VFEX on 20 March 2023.
The prospectus indicates that 5 400 000 convertible redeemable participating preference shares at a price of US$5,00 each will be issued, representing an aggregate amount of up to US$27 000 000.
It also details the offer of up to 1 000 000 ordinary shares at a price of US$10,00 each, representing an aggregate amount of up to US$10 000 000, and the listing by introduction of 30 000 000 ordinary shares and 6 000 000 convertible redeemable participating preference shares of the Company on the VFEX.
“The Preference Share Issue and Ordinary Share Offer are open to qualifying investors in Zimbabwe and outside Zimbabwe. The Preference Share Issue and Ordinary Share Offer were approved by a resolution of the board meeting held on the 22nd February 2023 and approved by the VFEX on 20th March 2023,” reads part of the prospectus.
West Property Holdings chairman Dr Michael Louis noted on the prospectus that the rationale for the IPO and listing is driven by the need to speed up the completion of pipeline developments by supplementing funding from the pre-sales of pipeline developments.
The company says this will minimise project risks associated with cost escalations and will resultantly have a positive impact on the Issuer’s profitability and a higher return on investment for providers of capital.
Added to that, it expects to provide a quality investment alternative to domestic and international property investors, anchored on a balanced portfolio with access to developmental profits as well as property management fees and rental incomes.
It also seek to contribute to the increase in Zimbabwe’s housing stock and therefore reducing the country’s housing deficit.
Housing delivery is one of the 14 national priorities under the National Development Strategy (NDS1), and the key result for the housing thematic area is the delivery of affordable and quality settlements in urban and rural areas.
To reduce the national backlog, the Government, private sector and individuals are working together to roll out construction projects, which also entails provision of on-site developments such as roads, water and sewer reticulation services at existing projects.
This is aimed at reducing the national backlog, which stands at 1,5 million.
Dr Louis said a super structure development of both residential and commercial properties is in progress with some projects under the Company’s portfolio already completed and occupied while others are at various stages of completion, planning and execution.
Completed and ongoing construction projects include more than 1 000 residential units namely, Homeland 263, Pokugara Clusters Phase 1 and 2, Pokugara Residential homes/stands, Gunhill Rise, Pomona City stands phase 1A and phase 1B and C, Millennium Heights Apartments Block 1, 2.
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