PrimeTime disposes Francistown property

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“This disposal is part of the execution of PrimeTime’s strategy to create long term value for linked unitholders.”


Property titan, Prime Time Holdings says it disposed of Mantlo House in Francistown, according to its announcement on Botswana Stock Exchange (BSE).
According to Prime Time Managing Director (MD) Sandy Kelly, the asset, was sold to Sypol Investment (Proprietary) Limited, an unrelated party of PrimeTime, for a consideration sum of P9.25 million gross of agent’s commission and other transaction costs, payable in cash. Kelly says the cash proceeds will used to complete the Design Quarter development in Setlhoa, Gaborone.
“This disposal is part of the execution of PrimeTime’s strategy to create long term value for linked unitholders. The Disposal provides the company with a unique opportunity to realise a premium over the independently determined carrying value of this Property, being P7, 92 million.” The property company cautioned shareholders that the impact of this disposal on its net profits and net is not material (3 percent being recognised as material in terms of the Listing Requirements of the Botswana Stock Exchange). “Our immediate investment property pipeline is progressing well.”
The Chirundu retail centre in Southern Zambia is expected to open at the end of this month and the Design Quarter at Setlhoa, Gaborone is scheduled for completion in August 2018 followed by the Munali Retail Centre, Lusaka in October 2018. Advanced plans are also in place for Pinnacle Park, a commercial centre planned for the second plot in Setlhoa.
Kelly says several significant tenants have been able to open at Pilane Crossing after obtaining their trading licences – PEP, Ackermans, Clicks and Jet all opened in the six months ended 28 February 2018. “It will still take some time to bed down this centre after its rocky start, but with the new KFC drive-through due to open shortly it is looking more positive.”
Elsewhere with other tenants in this period, Kelly says the Alexander Forbes lease was renewed for 5 years, AFA for 3 years, Botswana Life at Marula House for 3 years with increased space and in Ghanzi centre 5-year leases have been renewed for Barclays Bank, Lewis Stores and Topline. “The long-term vacancy at Acacia House has recently been filled as well as part of the PwC Office Park vacant space in Lusaka.”
Kelly says the extension at Sebele was completed in time for the Christmas trade with the toy and bike shops both able to open on 5-year leases. “Included in this year’s major refurbishment and maintenance plans were completion of the Sebele Centre and Pilane Crossing extensions, both of which have been done. The Ramotswa property is also receiving an external makeover to the parking area and negotiations continue to extend some of PrimeTime’s ground leases in Botswana.”
For the first 6 months of this financial year profits jumped by 8, 5 percent to P26, 6 million. The group says revenues from the retail mall Centro Kabulonga in Lusaka – an acquisition completed at the end of January 2017. This has impacted positively when combined with a strong performance from the rest of the property portfolio and the Group has achieved an 18 percent increase in rental income Year on Year.