By Staff Reporter
HARARE — Cement giant PPC has finally sold its 418-hectare Arlington estate for US$27 million after an earlier US$30m deal collapsed over a payment deadline and legal disputes surrounding the land.
The company said the buyer was “a privately held Zimbabwean company associated with property holdings in Zimbabwe”, without disclosing its identity.
PPC acquired the property in 1990, but the government seized it in 2010 before it was returned to the cement maker in 2024.
The land is zoned for commercial, industrial and residential development, giving it potential value beyond PPC’s core cement business.
An earlier agreement to sell the estate to developer Transvaal Africa for US$30m fell through after the buyer missed a payment deadline.
Transvaal cited legal action over the land and government plans to use part of the property for airport expansion as obstacles to completing the transaction.
PPC said the estate had no commercial value to its cement operations, explaining that it “does not contain any limestone deposits and PPCZ has no commercial use” for it.
The disposal comes as Zimbabwe remains PPC Africa’s best-performing market, with the group planning a new plant to meet rising demand for cement.
This sale allows PPC to offload a long-held asset outside its core business while leaving the property’s new owner to pursue its development potential.
PPC’s 27 October stock exchange announcement reveals that the US$27m sale generated US$21.4m in net proceeds after transaction costs and taxes.
The cement company subsequently paid a US$21.4m dividend, of which PPC’s 88% share amounted to US$17.9m after applicable taxes.
PPC Zimbabwe’s latest operating update also reported a 40% increase in group earnings before interest, tax, depreciation and amortisation (EBITDA) for the five months to August 2026, while its Zimbabwe operations continued to benefit from cement demand.
PPC is assessing a proposed new integrated cement plant with China’s Sinoma, although the investment remains subject to further assessment.
