PROPERTY developer, Mashonaland Holdings Limited (Masholds), will focus on affordable housing, high-yield projects and asset commercialisation, amid a property market split between strong USD-linked prime rentals and weaker local-currency leases.
The real estate sector is projected to expand by 5,4% in 2025, up from 2,1% last year, according to Treasury.
According to Masholds, growth is being driven by sustained demand for new spaces that prioritise occupier convenience, alongside investors turning to property as a hedge for capital preservation and balance sheet strengthening.
Its strategy of focusing on high-yield projects and affordable housing is expected to continue to attract both occupiers and investors seeking stability.
“The property market is forecast to remain segmented, with sustained demand for USD-linked leases in prime and suburban locations, and industrial/logistics assets benefiting from mining and trade,” chairperson Grace Bema said in a statement accompanying the group’s half-year financial report for the period ended June 30, 2025.
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“Resultantly, development activity is likely to remain cautious, focused on high-yield and affordable housing projects. The company will remain focused on commercialising its investments and making investments in high-demand developmental projects.”
She said the growth of the sector would depend on continued investment into supporting infrastructure by authorities, policy consistency and economic stability to ensure manageable risks for property investors.
“The group conducted a market valuation of its investment properties as at 30 June 2025. The portfolio’s value was US$93,1 million, up from US$91,6 million in December 2024,” Bema said.
“The portfolio recorded a capital gain of 1%, the gain translated to a fair value gain of US$990 068 at mid-year 2025. The company anticipates property fair value changes to be more subtle following the adoption of United States dollar reporting.”
Consequently, total assets were US$96,87 million at the end of the half year.
During the period under review, Masholds posted a revenue of US$3,66 million, 1% above the prior year.
Rental income increased by 15% to US$3,1 million from the prior period last year due to the onboarding of new tenants at the Pomona Commercial Centre following its completion in 2024’s fourth quarter.
“The development concept consists of wholesaling and flexible warehousing with 14 000sqm lettable space. Construction works on the Pomona Commercial Centre Development commenced in the 3rd quarter of 2023, and the development achieved practical completion in Q4 2024,” Bema said.
“A total of 6 500m² has now been leased out, and onboarded tenants have commenced trading. The company is engaging with potential tenants for further lettings at the property.”
During the period, the group retained its tenants, and thus an 88% occupancy rate for the rest of the portfolio.
Rental collections remained strong at 92% and in line with 2024 trends.
“While the company did not earn significant development projects revenue for the first half of the year, its performance in the second half of the year is set to be supported by the completion of the Greendale cluster stands project, which has now been fully sold off plan,” Bema said.
The Greendale Project entails the servicing of cluster housing stands, which commenced in May.
Regarding the group’s 12 Van Praagh Day Hospital Project, this has been completed and handed over to the tenant.
“The development started earning rentals under a long-term lease from the first quarter of 2024. The facility has now been opened for operation, effective 1 July 2025,” Bema said.
However, the fair value losses on investments held for trading led to the group posting a profit after tax of US$1,57 million, a 36% decrease from the previous year.
