Home » Business » Firm Completes U.S $5N Million Office Park

Mashonaland Holdings has successfully completed the construction of its $5 million office park in Belgravia and has managed to increase its land bank to 100 hectares of prime land.

The new office park is poised to be a valuable addition to the group’s property portfolio which slumped 3 percent in value last year.

The property firm is currently positioned to exponentially expand its 100 hectare land bank for selected projects through strategic partnerships and open market acquisitions.

Mashonaland Holdings chief property manager Mr David Mutemachani last week said the property group has managed to grow its land bank substantially using retained earnings.

“Mash Holdings managed to complete its Belgravia office block development at a cost slightly under $5 million using retained earnings. The project has a target initial yield of about eight percent.

“We have also substantially grown our land-bank using retained earnings,” said Mr Mutemachani.

“Mash has over the years acquired a diverse land bank at different stages of the development life-cycle for the various projects. Our land bank measures about 100ha of prime land.”

Mr Mutemachani said the land bank will cover for the construction of office parks, residential stands and industrial stands with high yields.

He said Mash Holdings recently bought 42,1 hectares in Ruwa earmarked for mixed use development.

Mr Mutemachani said on operations, the rental market remains depressed across all sectors characterised by downward rent reviews as waning aggregate demand continues to take its toll on the economy.

“Tenants are downsizing or entirely giving up space and there are high vacancy levels averaging 25 percent for a typical institutional portfolio.

“Tenants have been defaulting at alarming levels with collection levels sitting at around 80 percent,” said Mr Mutemachani.

Mr Mutemachani said the demand for industrial space has been more from small enterprises than from traditional industrial giants, a reflection of changing industry patterns.

Vacancies are relatively lower for small retail units and for retail space on office towers located in central business districts although even these tenants are increasingly under pressure.

Source : The Herald