By Duncan Mlanjira
ICON Properties, the subsidiary company of the NICO Group that became a limited company in November last year, made profit after tax of K1.28 billion for two months period that ended 31st December, 2018.
This was disclosed on Monday at Marriot Protea Ryalls Hotel in Blantyre at the company’s annual general meeting with its shareholders.
Standing in for their chairman, Robert Scharar, ICON Properties director, Vizenge Kumwenda, who is Managing Director of NICO Group, said ICON generated a total income of K1.44 billion which includes property revaluation gains of K512 million.
“Total expenses for the period were at K632 billion, which composed primarily of pre-listing and listing expenses, property management fees and property operating costs,” Kumwenda said.
ICON Properties plc was incorporated in Malawi as a private limited company on 4th June, 2018 and commenced its activities on 1st November, 2018.
It acquired the shareholding of various property companies, namely; Kang’ombe Investment Limited (75%), Chichiri Shopping Centre Limited (100%), Lilongwe City Mall (100%) as well as various direct properties in exchange for shares in ICON Properties.
In the same month, the company it announced plans to list its shares on the Malawi Stock Exchange and by end of December it successfully got listed.
“The year 2018 witnessed a drop in inflation and the monetary policy rate compared to 2017,” Kumwenda went on to say.
“Performance of the company was driven by our occupancy levels reflecting a strong demand for the commercial and office space in our property portfolio.
“Although the company only operated for a period of two months in 2018, the property portfolio was in operation for much longer.
“Average occupancy rate across the property portfolio was above 90% throughout the reporting period as it sustained high level of occupancy rates and achieved rental income target, thanks to their ideal location and quality of infrastructure.”
Kumwenda added that the directors did not recommend a dividend in respect of the two months period ended 31st December, 2018.
The company’s directors included Scharar, Kumwenda, Louis Sibande, Dasford Kamkwamba, Simeon Banda, Graham Chipande, Joseph Malingamoyo and Zunzo Mitole, all equipped with highest academic qualification as well as vast work experience in the financial sector.
ICON Properties aims at transforming the real estate landscape to the next level so that they continue to being the market leader and its listing on the Malawi Stock Exchange came after a 10-year break.
NICO was the first company to list on the Malawi Stock Exchange.
ICON is a product of an extensive collaborative effort among many parties having worked very closely with other shareholders to realize this dream.
In announcing the launch of ICON on November 13, Kumwenda had said it was formed with the objective of owning, leasing, managing and developing of commercial, industrial, and retail properties.
ICON’s properties are located in major economic centres in Malawi and include landmarks shopping malls, prime office buildings and key industrial sites and some of the landmark properties include Chichiri Shopping Mall — the largest in Blantyre located at a major junction on key roads connecting various parts of the city.
Lilongwe City Mall also located in the busiest commercial district in Lilongwe Old Town and Kang’ombe House which is the tallest commercial office building in Malawi located in the high street of the Capital City Centre.
It has assets across all the three regions of Malawi that are well positioned to capture middle and upper class retail spending.