- PrimeTime says recovery will take a while
- Regears and removing rental concessions led to excellent occupancy levels
GAZETTE REPORTER
The property sector is still in recovery from aftershocks of the COVID-19 pandemic which constrained economic growth, dampening consumer and business confidence, the Chairman of PrimeTime, Paul Masie, has said.
Noting that it will take some time for the property sector to fully recover, Masie says PrimeTime has proven its resilience and defensiveness despite these current headwinds.
“Thankfully, we have experienced a return to normality since COVID-19 restrictions were lifted, thereby enabling us to remove all tenant rental concessions, which, along with lease regears, helped PrimeTime to retain its tenants and achieve excellent occupancy levels amidst tough trading conditions,” he says in the company’s financials for the year that ended 31 August 2022.
“Our projections indicate a return to income growth off a re-based platform.”
Property portfolio
According to Masie, PrimeTime’s portfolio in Botswana, consisting of 21 properties representing 64 percent of the Group market value, saw a reasonable uplift in value of 9 percent at the year end.
“Rental income was up 11 percent on the prior year and vacancies were just 2 percent by the end of the year,” he notes in the financials.
“Lobatse Junction Shopping Centre was 100 percent let when it opened in October 2021. Valued at P114 million, it comprises 9 000m² and 39 tenants with Spar as its anchor tenant plus a good spread of national retailers.”
The company completed a long planned refurbishment of South Ring Mall in Gaborone at a cost of P2.9 million, forming part of its ongoing commitment to maintain and enhance the attractiveness of PrimeTime assets to ensure long term tenant retention.
The future
According to Masie, during the year under review, the company disposed of its Ghanzi and Ramotswa retail properties for a combined consideration of P45 million.
“The funds raised have been redeployed into our Prime Plaza II Motswere Building development, which is progressing well,” he says.
“We expect the first building to be completed in August 2023 and are in advanced negotiations with potential occupiers for the building, which offers a new level of tenant experience in the Botswana market.”