Nico’s Icon Properties plc posts K1.28bn profit in 2 months

Icon Properties plc, a subsidiary of Nico Holdings plc and listed on Malawi Stock Exchange (MSE) early this year, has posted a K1.28 billion profit for the two months ended

ICON Properties directors during the AGM

December 31 2018.

Chibisa House
Icon Properties: Kang’ombe Building in Lilongwe
Icon Properties: Chichiri Shopping Mall

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,” he said.

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 Chitanda, Joseph Malingamoyo and Zunzo Mitole, all equipped with highest academic qualification as well as vast work experience in the financial sector.

Icon Properties was incorporated in Malawi as a private limited company on June 4 2018 and started its activities on November 1 2018.

The firm acquired the shareholding of various property companies, namely Kang’ombe Investment Limited (75 percent), Chichiri Shopping Centre Limited (100 percent), Lilongwe City Mall Limited (100 percent) and Nico Properties Limited (100 percent) and various direct properties in exchange for shares.

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Iantana
Iantana
2 years ago

The report is misleading or am not understanding this report. Expenses of K632,000,000,000.00 (632Bn) really? what would be the total asset value of the company? if assets revaluation only gave 512M ndekuti phindu lenileni ndi about 928Million …kaya

CHIMULIRENJI
CHIMULIRENJI
2 years ago

Time to buy some shares.

Greshom
Greshom
2 years ago

Great . It would be interesting to find out how the combined properties performed prior to the combination. Otherwise its difficult to make an assessment of performance based on this News report since the Assets forming the new company were already in operation prior to the reorganization and listing.

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