Published: 13 hours ago

Cement manufacturer PPC Zimbabwe (PPCZ) has reached an agreement to sell its Arlington Estate property in Harare for US$30 million, the company announced.

The buyer is a property development firm with project execution expertise and is not a related party, according to PPCZ's South Africa-based parent company, PPC Limited.

Acquired in 1990, Arlington Estate spans 418 hectares and is zoned for residential, industrial, and commercial activities. PPC Limited explained that the property contains no limestone deposits and has no strategic use in PPCZ's core cement business.

"The Arlington property does not contain any limestone deposits, and PPCZ has no commercial use for the Arlington Estate in its core cement-producing business," the statement said.

The sale will be settled in US dollars, with PPC Limited determining the use of proceeds based on its capital allocation model and optimal gearing levels. Transfer of ownership, along with all legal risk and benefits, will pass to the purchaser upon registration of the property.

While there are no conditions precedent to the sale, certain milestone events must be met within specified timeframes, including obtaining approval from the Reserve Bank of Zimbabwe, declaring a special dividend to shareholders, and repatriating the proceeds to PPC in South Africa.

In addition, PPCZ and the buyer have agreed that all cement requirements for developments on Arlington Estate will be supplied exclusively by PPCZ, effective from the date of disposal.

PPC Limited said the sale aligns with the company's strategy to dispose of non-core assets at fair value, freeing resources for investment in its cement production business.
- The Herald

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