PROPERTY developer Mashonaland Holdings Limited (Masholds) is shifting its focus towards commercialising a series of recently completed projects within its US$93,5 million portfolio, businessdigest can report.
In September, Masholds managing director Kudakwashe Masundire told businessdigest that the firm was intensifying efforts to diversify and realign its portfolio, with a strong emphasis on capital preservation and maintaining a robust balance sheet to court investors.
This strategic pivot comes as the company’s half-year results for the period ended June 30, 2025, showed growing investor preference for real estate as a hedge against economic shocks and persistent currency instability.
“The group remains cautiously optimistic, focusing on unlocking value from recent investments, strengthening cash flows and preserving profitability through disciplined execution,” Masholds said in its trading update for the period ended September 30, 2025.
“Efforts will centre on commercialising completed projects and pursuing selective growth to enhance shareholder value.” Regarding the Pomona Commercial Centre, Masholds confirmed that construction was completed and a certificate of occupation obtained.
However, the project encountered a setback after the anchor tenant failed to take up space as agreed.
“While remedial engagements are ongoing, the company has since secured 52% occupancy at the development with additional leases set to be concluded before the end of the year,” Masholds said.
In Greendale, servicing works for the cluster housing stands, including installation of water and sewer reticulation, roads, storm water drainage and construction of a boundary wall, gatehouse, and caretaker’s quarters, were completed in September.
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“The stands were sold out and have since been handed over to the off takers,” Masholds said. During the reporting period, the company also acquired land for the development of residential apartments for resale.
“The project will entail the servicing and construction of residential apartment units,” Masholds said.
Pre-construction work, including topographical and geotechnical surveys as well as environmental impact assessment certification, is underway, with construction expected to begin in the first quarter of 2026.
Revenue closed the nine-month period ended September 16% higher at US$16 million, compared to the 2024 comparative, supported by sales from the Greendale cluster stands and new lettings at the Pomona Commercial Centre.
Portfolio occupancy and collections remained stable at 88% and 92%, respectively.
Operating profit, however, declined by 3% due to one-off costs, including maintenance of vacant spaces to support occupancy growth and credit loss provisions on terminated leases.
Operating profit before fair value adjustments came in at US$2,29 million. As of September, Masholds’ property portfolio grew marginally to US$93,5 million.
“The property development market continues to experience strong demand against constrained supply and a persistent affordability gap. The residential sector, particularly the mid-market and affordable housing segments, remains a key growth area,” Masholds said.
“The market continues to shift towards suburban and peri-urban zones, with mixed-use developments expected to gain further traction as both developers and buyers pursue greater value and improved amenities.
“While the market has remained resilient, sustained growth across sub-sectors will depend on infrastructure provision, access to appropriately priced funding, and broader macroeconomic stability.”
Masholds added that real estate continues to be viewed as a preferred investment class, offering capital preservation, moderate to high returns and manageable risk.
The firm said broadly, real estate remained a preferred investment class, offering capital preservation with moderate to high returns and manageable risk.
“Key investment opportunities lie in affordable and mid-range housing developments, mixed-use projects, and infrastructure investments that support economic expansion and urban transformation,” Masholds said.
It said the occupier market remained selective and cost-sensitive, with performance varying across sectors.
“Strategically located suburban office parks and newly built retail centres continue to attract tenants and investors, while CBD (central business district) offices face high vacancies and limited rental growth,” Masholds said.
“The industrial occupier market remains resilient, particularly in prime locations where occupancy and yields are strong, despite ongoing challenges related to infrastructure, power supply, and rising costs.”
