14
16
30
10
25
44
8
20
1
15
39
2
13
46
24
26
29
49
23
32
18
4
5
38
37
40
22
34
33
31
35
3
9
48
43
11

FX crunch hit real estate market

CLOUDINE MATOLA

The severe foreign currency crisis has had a detrimental effect on Zimbabwe’s real estate sector in Zimbabwe, , Grace Bema, the Mashonaland Holdings (Masholdfs) board chairperson has said.

She stated that in order to reduce market risk, publicly traded real estate development and investment company Masholds, along with other market participants, are now opting to work on low- to medium-sized investment projects that provide attractive returns.

“The real estate market has been impacted by persisting foreign currency shortages in the formal sectors of the economy. Low liquidity has restricted the number of freehold property transactions concluded in the market. In the development space, in an effort to mange market risk, property developers have opted to implement low to medium scale investment projects which offer compelling returns,” Bema said.

Masholds, according to Bema, is however, committed to achieving its strategic goals, which include finishing up all ongoing real estate development projects.

“Despite headwinds in the economic environment, the group remains focused on its strategic objectives. Major focus continues to be set on completion of on-going property development projects which form part of the group’s portfolio diversification roadmap,” she said.

In its financial results for the six months to June 30, 2024, profit for Masholds rose by 72% to US$2.4m from US$1.4m in the prior comparative period, due to improved operating profit position and capital gain on investment property of US$1m.

Revenue rose by 15% to US$3.6m in the period under review from US$3.1m reported in the prior comparative period.

Also rental income contributed to the positive performance having improved to US$2.7m in June 2024 from US$2.3m in 2023.

The group earned US$542,227in revenue from Mashview garden project which contributed to the revenue performance for the half year period.

The company also said the investment property portfolio was valued at US$85.9m in June 2024 compared to US$80.7m in June 2023.

 The growth in the asset base was as a result of property capital gains of US$1m and investments of US$4.2m which were made into ongoing development projects.

Bema expressed concerns over growth in voids.

”The occupier sub-market has witnessed constant growth in voids particularly in the CBD office segment which has been affected by growing tenant preference for suburban space. The retail and industrial segments continue to show signs of growth with tenants looking for space in strategic locations which offer visibility and access to markets. Residential property continues to offer investment opportunities for developers, however, the increasing cost of construction represents a headwind against sustainable growth in this segment.”


Source link

Show More

Related Articles

Back to top button
ZiFM Stereo