Letlole explores market opportunities in Africa

Keikantse Lesemela | Thursday October 31, 2013 15:45

Briefing the media recently, Stanlib Real Estate Asset Manager Sethebe Manake said they want to explore opportunities in Africa because it is a profitable market. The company is targeting countries such as South Africa, Mozambique, Kenya and Nigeria.

“Right now, we are still exploring African countries in which we can invest. We have already identified the kind of returns we will get but we are yet to identify the sector we should venture into,” said Manake.

 She said they need more exposure to commercial and retail sectors as they have good returns. Stanlib is the asset manager for LLR.

LLR’s profit recorded for the year ended 30 June 2013 increased by 9 percent amounting to P89.9 million. In the year, LLR undertook the extension of its warehouse with the intention to increase first year net income by P6.1 million and increase the yield of the portfolio by 11.58%. The extension of the 11,200 square metres asset, which cost P41 million, is in progress and will be completed in January 2014.

LLR’s portfolio mix includes leisure at 42%, industrial at 40% and commercial and retail at 18%. Its properties include hotels, warehouses and factory shells, which the company says, are all financially viable in terms of tenants and stable rental stream.

This mix represents a diversified yet balanced portfolio of long term and short term rentals in the tourism and industrial sectors.

Manake said the company wants to make the current assets more valuable and maintain sustainable growth year after year.

“We are looking for long term growth so we are continuing to look for more market opportunities outside Botswana,” she said.