Diversified property outfit, RDC Properties Limited Group has experienced strong growth during the half year ending June 2018 with its investment and property portfolio up by an impressive 50 percent from the previous year.
The group announced at its financial results briefing that its portfolio grew to P1.88 billion by the 2018 half year, from P1.2 billion during the previous corresponding period.
When presenting on the results, board chairman, Guido Giachetti revealed that the strong results are underpinned by the Group’s stable Botswana portfolio and the solid performance of the portfolio in the Western Cape region of South Africa (Capitalgro fund).
Capitalgro acquired The Edge building on 20 March 2018 (a 100 percent let building) for a total acquisition cost of R307 million, financed through a bank mortgage loan and a rights issue by Capitalgro. RDC Properties Limited therefore acquired further rights by injecting R120 million in the deal which resulted in their shareholding in Capitalgro increasing from 34.85 percent to 62.99 percent. According to the Chairman, the Group is currently exploring a few other exciting investment opportunities in South Africa with further details to be announced in due course.
The Chairman stated that the Western Cape region in South Africa is an area of focus for the Group – the Capitalgro management team works hand in hand with the Botswana team.
“The positive energy generated by the complementary experience of both team members has resulted in an extensive pipeline of potential projects and target acquisitions,” he said, adding that the management remains focused on acquiring quality properties which are yield enhancing for the RDC portfolio.
A further development under way is the Zimpeto convenience centre where earthworks are under way; this is expected to be a 24 months project. In Namibia, the Group is awaiting the ministerial approval of the land transfer and finalisation of the deeds of sale before commencing building works for convenience centres in Tsumeb and Grootfontein. .