GAZETTE REPORTER
In the period between 2008 and 2018, the value of property owned by Primetime Properties increased from P200 million to over P1.4 billion, the company annual report shows.
The value of the properties grew from P200 million to just above P400 million in 2011, and further leapfrogged to over P800 million in 2015. Through further investments, the portfolio rose further to P1.4 billion for the period ending 31st August 2018
Year-on-year lease revenue grew 13 percent to P125 million and investment property by 26 percent to P1.4 billion, while Net Asset value (NAV) increased 11 percent to P762 million. According to Managing Director (MD) Sandy Kelly, the price per linked unit remained fairly static over the course of the year, ending it marginally down at P3.12.
The market value of the group’s portfolio grew considerably as new properties were added, but also because of USDollar gains recognised in Zambia on revaluations. Several of the Botswana properties also saw increased market values, but overall capital value growth in the company’s domestic market was pedestrian in the year. At the year end the portfolio consisted of 99,850 m² of total lettable area across the office, retail and industrial markets, a 15 percent increase year-on-year and double the total on listing in 2007.
While one small property was disposed of, Mantlo House in Francistown, significant additions were made to the portfolio during the year. The Chirundu Mall in Zambia, located on the border with Zimbabwe, was completed in April. A second property, Munali Mall in a central suburb of Lusaka, opened during the last week of August 2018. In Botswana, the Design Quarter at Setlhoa was also completed in August, offering an exclusive home and office décor shopping experience in Gaborone. The incorporation of these properties into the portfolio towards the end of the year means the benefit of the income they will generate will only be realised in the coming financial year and beyond, according to Kelly.
“Attracting and retaining high quality tenants is the basis on which PrimeTime has grown. At the end of August 2018, vacancies stood at 5 percent across the portfolio. This is slightly higher than the 3 percent recorded in the prior year which is due to the completion of the Design Quarter and Munali Mall right at the end of the financial year,” he said.
According to the PrimeTime boss, retail malls typically take a few months to achieve full occupancy post completion, so 5 percent reflects a very solid performance through the rest of our portfolio. He said these voids are being absorbed and that they expect to see our vacancy rate fall considerably in the next few months. He said the tenanting of Pilane Crossing has settled down after its challenging start. Regional retailers Clicks, Jet, PEP and Ackermans all opened during the year as well as the extension of a drive-through KFC. A second 1,100sqm extension is now underway at the centre, scheduled for completion in Q2 of 2019, a significant portion of which is pre-let. Kelly said the new extension at Sebele Centre opened in good time for the new tenants to benefit from the 2017 Christmas trade.