Listed property firm, Mashonaland Holdings’ recorded a growth in rentals for the half-year ended 31 March 2011 driven by positive lease reviews and new lettings.
Revenue for the period grew to $2 633 120 compared to $1 193 354 during the same period last year.
During the period under review office rentals per square metre ranged from $8,50 to $9,50 while industrial space per square metre ranged from $1,75 to $4
Retail space ranged from $15 to $20 depending on size and location.
“Management will continue to negotiate rentals in line with market levels although the up-side in revenue hinges on the improvement on the country’s economic performance,” said company chairperson Elisha Mushayakarara in a statement accompanying its financial results.
Mushayakarara said the new lettings resulted in reduction of the vacancy rate, from 10% at the beginning of the financial year to 7% at the end of March.
He said the office sector continued to have the most vacancies.
“Preparation is at an advanced stage to refurbish one of the office towers to modern internal finish and this will enable achievements of competitive rentals,” said Mushayakarara.
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Operating profit for the first six months was $1 820 748 up from $1 159 790 the same period last year. Property expenses were $284 801 from $194 271 in 2010 representing 10% of revenue.
“The continued implementation of previously deferred maintenance programmes and operating costs relating to voids were the main drivers of this spending,” said Mushayakarara
Net property income after administrative expenses was $1 754 774 from $ 1 170 609 in 2011.
He said operation costs for building had stabilised but management was concerned by the level of utility charges
