WEST PROPERTIES Holdings Limited (WestProp) yesterday listed on the Victoria Falls Stock Exchange (VFEX) becoming the 12th company to list on the US dollar-denominated market established in 2020 as part of an offshore financial services centre in the resort town.
This is happening at a time the Government is positioning the VFEX to compete on a global scale by attracting quality listings.
WestProp is a leading player in Zimbabwe’s property development landscape, with a portfolio spanning across residential, commercial and industrial properties.
West Prop board chairman, Micheal Louis said the listing day (Friday) was not another attempt to be a successful listing – but about how the company regained hope and believed that a better life was possible.
“Today underlines the story of how much unfinished business we have in Zimbabwe with continued hunger, unemployment and economic emancipation. This should no longer be the case after 30 years of isolation.”
“We owe something more to our people. Today is about listing a grand vision and economic framework in line with the National Development Strategy to achieve and empower a significant upper middle income society by 2030 and to chart a new transformative and inclusive development agenda, with no one left behind,” said Louis
VFEX also allows listed companies to raise and trade their stock in any convertible hard currency thereby limiting the exchange risk.
The organisation became the first property counter to list on the VFEX as they seek to raise capital to accelerate the development of ongoing projects that include Pokugara Residential Estate, Millennium Heights, Pomona City, The Mall of Zimbabwe, Millennium Heights Office Park, and the Warren Hills Golf Estate.
VFEX board chairman Caroline Sandura said the listing marks a new chapter for WestProp as they go public after having been a private company.
“Listing on the VFEX is a monumental way to begin a new chapter as a public company. WestProp will enjoy the benefits offered by the bourse such as the ability to raise capital in hard currency, tax incentives, lower trading fees for investors, valuation and reporting made easier and strategic listing and placement given the VFEX is earmarked to sit in the offshore financial services centre hence visibility to the international community,” Sandura said.
West Props’ listing shows their commitment towards enhancing their growth prospects and increasing investor confidence in the country.
WestProp founder and chief executive Ken Sharpe described the road to listing as an interesting journey for the company as it earmarks to put 1 billion bricks by 2050.
“We are just over 57m bricks. That makes us have confidence and belief because six percent of the billion brick journey has already been achieved. We won’t stop until our vision is realised. I would like to thank all stakeholders for their dedication, commitment on this journey,” he said.
He said the company was now valued at US$300 million after listing 30 million ordinary shares on VFEX.
“…So, what we are saying is as a private company we have now become a listed public company valued at US$300 million and those shares are available for buying and selling at the VFEX,” Sharpe said.
“The second listing that we intended to do was the preferred shares listing in which we were raising an additional US$30 million and we had an under subscription of US$3,3 million, so we agreed with the bourse not to proceed with that listing until such time that the market was ready to take up the full offering,” he said.
Property is regarded as the safest form of investment as it hedges against inflation. As the value of money decreases over time due to inflation, the value of real estate tends to increase, helping to preserve the value of the investment.
One big advantage of investing in real estate is that it can be financed through debt, making WestProp a safe bet for high return on investment. This leverage makes investing in property counters (a tangible investment) a viable opportunity for investors
A tangible investment is something physical that one can touch. Property is a more tangible investment. Not only is property tangible, but one can also make it more valuable through renovations.
Government is committed that the VFEX will remain a foreign exchange market in line with Vision 2030, which requires a lot of foreign investment as the country needs a vehicle that will make it attractive to foreign investors hence the VFEX, which has tax benefits.
