PROPERTY developer, Mashonaland Holdings Limited (Masholds), is positioning itself to capitalise on opportunities in the housing market while repositioning its property portfolio — particularly in the central business district (CBD) — to align with shifting market demands.
The shift follows a sustained exodus of Zimbabwean businesses from the CBD to suburban hubs including Newlands, Eastlea, Mt Pleasant, Milton Park and Belvedere.
According to Knight Frank, suburban office yields are averaging around 9%, while CBD assets trail at 6%, lower than comparative markets in Zambia, Mozambique and South Africa.
This trend has increased demand for residential properties, as developers seek to attract businesses relocating from the CBD and homeowners looking for rental options.
“Going forward, the group plans to leverage opportunities in the housing market while repositioning its properties, particularly in the CBD, to meet evolving market preferences,” Masholds board chairperson Grace Bema said in the firm’s annual financial report for the period ended December 31, 2025.
“The group also plans to enhance tenant experience and portfolio occupancy by improving building equipment and enhancing service delivery.”
In its third-quarter 2025 report, Mashonaland Holdings Limited revealed a strategic shift towards commercialising its completed projects.
“The group performed an open market valuation of its investment properties at December 31, 2025. The investment property portfolio was valued at US$94,7 million as at December 31, 2025, compared to US$91,6 million in 2024,” Bema said.
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“The growth in the asset base was due to a 3% capital gain and investment of US$1,2 million. The capital uplift on investment property was largely recorded on the group’s landbanks and the Pomona Commercial Centre.”
Pomona Commercial Centre, completed in December 2024, has already secured 60% occupancy, with a robust leasing pipeline targeting full occupancy within the year.
The group also acquired residential land on Coronation Avenue in Greendale, Harare, earmarked for the development of 30 upmarket residential apartments, Bema said.
“All the statutory approvals have been secured and the development project is planned to commence in Q1 2026,” she said.
The group also expanded its small to medium enterprise (SME) offering at Chiyedza House in 2025.
“The facility now comprises 90 self-contained and fully furnished offices catering to SMEs across various sectors,” Bema said.
“In addition, the building now offers more than 40 retail shops on the ground and mezzanine floors, complementing the office offerings.
“The facility has been well received by the market with average occupancies above 90%.”
In the fourth quarter of last year, Mashonaland secured an agreement to acquire a 26,7-hectare land bank for the development of 445 medium-density residential stands, strategically located about 5km northwest of Shurugwi town.
“The group achieved a 13% revenue growth from US$7,2 million in 2024 to US$8,1 million,” Bema said.
“Revenue growth was supported by project revenue earned from the disposal of Greendale stands, which the company serviced and delivered to project customers during the year.”
Rental income increased by 12,6% to US$6,3 million, from 2024, supported by an increase in occupancy at the Pomona Commercial Centre and across the portfolio.
Resultantly, profit after tax increased by 8% to US$4,01 million, supported by the revenue and investment property capital growth.
