PPC, a major cement producer, has finally sold a piece of land in Zimbabwe after more than ten years of legal battles. The company’s Zimbabwe subsidiary sold the 418-hectare Arlington Estate in Harare for around $30 million (about R530 million). The land was seized by the Zimbabwean government in 2010 during land reforms, and PPC fought for many years to get the title deed back, which was only returned in late 2024.
The sale was confirmed in a statement released on Thursday. The land has no limestone and is not needed for PPC’s main cement operations. The company said the money from the sale will be used to support its other investment priorities and strengthen its financial position. The buyer is a private local developer who plans to turn the site into a mixed-use development, including shopping, offices, and residential areas.
This buyer is not connected to PPC, and the deal is subject to approval from the Reserve Bank of Zimbabwe. PPCZ must get the necessary approval to declare a special dividend and move the money back to South Africa. The buyer is required to pay the full amount within 60 days, and the transfer of ownership is expected to happen within 90 days.
Interestingly, the buyer has agreed to buy all the cement needed for projects on the site from PPC, creating an extra revenue stream for the cement company. The land’s book value was recorded as R37 million, so the sale price is significantly higher than its value on paper.
This sale marks the end of a long and difficult chapter for PPC regarding the land, and it provides a boost to the company’s cash resources. The deal highlights how the company is managing its assets and focusing on core operations while turning problematic land into valuable cash.