Covid-19 fails to hold Mash Holdings

26 Feb, 2021 - 00:02 0 Views
Covid-19 fails to hold Mash Holdings Mr Gibson Mapfidza

eBusiness Weekly

Enacy Mapakame

Listed property firm, Mashonaland Holdings Limited, is forging ahead with property developments despite the disruptions caused by Covid-19 pandemic as the company seeks to diversify income streams.

In a trading update for the first quarter to December 31, 2020, managing director Gibson Mapfidza, indicated the firm would continue to pursue selected property developments with measures in place to manage the negative impact of the Covid 19 pandemic.

Businesses across sectors have in the past year battled the effects of Covid 19 as the country implemented various levels of lockdown since March 30, last year.

“On the new developments front, the company is proceeding with its selected low risk projects to diversify income streams.

‘‘The company has implemented measures to ensure business continuity and mitigate against the negative effects of Covid-19.

“However, the residual risks on key investment metrics like arrears and voids remain high. The company will continue to implement the World Health Organisations Covid-19 protocols in its multi-tenanted buildings to ensure safety of all its stakeholders. “The company continues to monitor the implementation of the protocols to ensure effectiveness of the measures,” said Mapfidza.

Currently, the development of its Bluff Hill cluster housing project is on-going with the construction of a model house having commenced in February 2021. According to the group, all the necessary approvals and development permits are now in place.

Another project — Lot C Galway — the mixed-use sub-division layout and report is now at an advanced stage for final submission and approval.

Mapfidza added that value engineering to ensure project viability is underway for its 9 Natal Office Park.

For the Windsor Park project, the compliance certificate has been obtained and selling of stands is now underway.

Finalisation of designs for Charter House reconfiguration is also under way and commencement of the project is dependent on the Covid-19 containment. The Charter House reconfiguration seeks to transform the property into world class hotel. This comes as property firms are looking at other uses for their commercial properties in the Central Business District (CBD) where voids have been increasing of recent due to exodus of tenants from the CBD to office parks or suburban offices in search for lower rentals or more serene environments.

The voids have been a result of companies downsizing operations or closing. During the first quarter, Mashonaland Holdings recorded a marginal improvement in occupancy levels to 79,4 percent from 77,7 percent despite the overall softening demand for office space.

Rental income increased by 47,6 percent compared to the same period last year driven by quarterly rent reviews which the business has been performing in line with market practice.

Mapfidza attributed the improved revenue performance to new leases concluded during the quarter.

While Covid-19 is posing uncertainties for the financial year, management says the Company will continue to preserve value by pursuing its property development projects in line with the broader company strategy while continuing with efforts to retain existing tenants and secure new leases to sustain overall business.

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