PPC sells 418-hectare Arlington property for $27m

The National

PPC has sold off its prime 418-hectare Zimbabwe property for $27 million, finally sealing the disposal of the asset after an earlier transaction with another entity failed to materialise.

The cement maker, whose Zimbabwean unit has been highly profitable on the back of sustained demand, received $21.4m net proceeds from the transaction. PPC Zimbabwe is exploring expansion to meet elevated demand for the construction industry material, with the South African parent company positioned to receive bumper dividends.

PPC holds an 88% interest in the Zimbabwean unit. It said on Tuesday that the Zimbabwean unit had “disposed (of) the Arlington Estate, a vacant immovable property situated in the District of Harare, Zimbabwe” for a gross cash consideration of $27m. After transaction-related costs and applicable taxes, PPC bagged $21.4m in net proceeds from the transaction.

“Following the disposal, PPC Zimbabwe declared and paid a dividend of $21.4 million. PPC’s 88% share of the dividend, net of applicable taxes, amounted to US$17.9 million,” said PPC.

The Arlington property that has been disposed of by PPC does “not contain any limestone deposits”, it said, adding that its Zimbabwe unit had “no commercial use for the Arlington Property in its core cement-producing” business.

“Consequently, the disposal is in the best interest of the group.”

It said it has disposed of the property to a privately held company associated with property holdings in Zimbabwe which was not a related party.

Last year, a transaction by PPC to dispose of the same property to Transvaal Africa for $30m did not materialise. Transvaal Africa said the deal had not materialised due to legal uncertainties over the property.

Transvaal Africa CEO Patson Moyo was quoted in local Zimbabwe media as saying: “Every investment decision we make is guided by commercial discipline, sound governance and long-term value creation. When the legal and commercial framework of a project changes materially, we have a responsibility to reassess that investment in the best interests of our investors, partners and stakeholders.”

For its 2026 full year, PPC Zimbabwe declared and paid $36m in dividends after it reported an 18% increase in sales volumes compared with the prior year. During the first half of the year under review, volumes increased by 25%, while for the second half, volumes increased by 12% over the comparable period due to a gearbox breakdown at the Bulawayo factory on 3 February 2026. This had affected volumes in that region for two months.

Revenues for the period firmed up 14.2% to R3.5 billion, largely affected by the strengthening of the rand-dollar exchange rate over the year by 5.2%, PPC said.

“Strong demand supported higher clinker imports to supplement production to meet market requirements,” said the company.

Trading profit improved by 19.5% to R761m, while earnings before interest, tax, depreciation and amortisation rose to R961m compared to R849m a year earlier.

Moreover, PPC’s Zimbabwe operation “remains debt-free and had unrestricted cash holdings at 31 March 2026 of R139m” with nearly all of the unit’s cash held in hard currencies.

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