PROPERTY developer, WestProp Holdings Limited, is in final talks to begin construction of a regional mall as the firm seeks to grow its projects’ values past its current US$147 million pipeline.
The regional mall comes as the Victoria Falls Stock Exchange-listed concern is constructing two multi-billion-dollar developments — Pomona City and the Hills Golf Estate — as it seeks to deliver gross annual profit of more than US$20 million over the next three years.
Pomona City is a development situated on a 273-hectare piece of land that will offer a secure gated premium lifestyle that will be premised on the ‘city within a city’ concept and be a smart city. The Hills Golf Estate seeks to revamp an 18-hole golf club into a US championship standard course and develop a lifestyle community that includes a tennis and swimming academy, residential units and a luxury hotel.
In a statement accompanying its results for the half year ended June 30, 2023, WestProp board chairman Michael Louis said the firm was committed to growing the valuations of its projects.
“The group has already committed to its rollout of two multi-billion-dollar developments which Includes Pomona City a ‘City within a city’ development as well as one of Africa's most premier Golf Estate ‘The Hills’ to which case both developments are already actively engaged and being developed to launch in 2024,” he said.
“We are also pleased to confirm that we are in the final stages of negotiations for Zimbabwe's long awaited first ever regional mall ‘The Mall of Zimbabwe’ which we expect to go to ground by mld-2024.”
During the period under review, WestProp posted a 23% increase in profit after tax to US$2,72 million during the period under review from the same period last year.
“The revenue for the group increased marginally to US$11,770,480 during the period under review when compared to US$11,656,632 for the same period last year,” Louis said.
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“Despite a marginal growth, the board has approved current projects to a value of US$147 million of sales and an anticipated gross profit of US$68 million. This is a confirmation that we are on track to deliver a gross profit in excess of US$20 million per year for the next three years.”
He said operating expenses for the period under review amounted to US$2 374 208 compared to US41 249 458 for the same period last year, representing a US$1 124 750 increase.
“The cost increase is due to Victoria Falls Stock Exchange initial public offer (IPO) and listing requirements which resulted in the group incurring ad hoc public relations, IPO, audit and professional fees, these were expensed in the half year ended June 30, 2023,” Louis said.
However, a near 248% increase in its cash and cash equivalents during the half year left WestProp liquid with a current ratio of 4,7 at the end of June, leaving the firm able to cover any short-term debt.
WestProp reported that a market-based valuation of its land banks inclusive of its 70% interest in Sunshine Developments (Private) Limited during the period half year period gave an aggregated fair value of US$207 750 000.
Sunshine Developments (Private) Limited is a joint special purpose vehicle, between Harare City Council and Augur Investments, which belongs to WestProp chief executive officer Ken Sharpe.
The Victoria Falls Stock Exchange-listed firm also declared a dividend of 46% of US$2,72 million, translating to US$0,04 per share payable to ordinary shareholders.