Cement manufacturer PPC has completed the sale of its 418-hectare Arlington Estate property in Zimbabwe for US$27 million, securing net proceeds of US$21.4 million after transaction costs and taxes.
The disposal comes after an earlier attempt to sell the same property to Transvaal Africa for US$30 million failed to go through last year due to legal uncertainties surrounding the asset.
In a statement released on Tuesday, PPC said its Zimbabwean subsidiary had sold the vacant property, which is located in Harare, to a privately owned company associated with property investments in Zimbabwe.
PPC, which holds an 88 percent stake in PPC Zimbabwe, said the property had no limestone deposits and was not required for its core cement manufacturing operations.
“Consequently, the disposal is in the best interest of the group,” the company said.
Following the transaction, PPC Zimbabwe declared and paid a dividend of US$21.4 million. PPC received US$17.9 million as its 88 percent share of the dividend after applicable taxes.
The latest sale follows the collapse of a proposed deal with Transvaal Africa, which had agreed to purchase Arlington Estate for US$30 million last year.
Transvaal Africa chief executive officer Patson Moyo said at the time that the company had withdrawn from the transaction because of legal and commercial uncertainties.
“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,” Moyo said.
The disposal comes as PPC Zimbabwe continues to benefit from strong demand for cement, driven by activity in the construction sector.
For the financial year ended March 31, 2026, PPC Zimbabwe recorded an 18 percent increase in sales volumes compared with the previous year and declared dividends totalling US$36 million.
Sales volumes grew by 25 percent during the first half of the financial year before slowing to 12 percent growth in the second half, following a gearbox breakdown at the Bulawayo factory on February 3, 2026. The disruption affected production and sales in the region for two months.
PPC reported that revenue for the period increased by 14.2 percent to R3.5 billion, partly reflecting a 5.2 percent strengthening of the rand against the US dollar over the year.
“Strong demand supported higher clinker imports to supplement production to meet market requirements,” the company said.
Trading profit rose by 19.5 percent to R761 million, while earnings before interest, tax, depreciation and amortisation increased to R961 million from R849 million recorded in the previous year.
PPC Zimbabwe also maintained a debt-free position, with unrestricted cash holdings of R139 million as at March 31, 2026. The company said almost all the subsidiary’s cash reserves were held in hard currencies.
The strong performance of the Zimbabwean operation is expected to support further dividend payments to its South African parent company, while the local business explores ways to expand production capacity to meet growing demand for cement.
