Prime Time property value increases by P20 million

Boitshepo Majube | Thursday November 28, 2013 16:40

 

In its audited financial results for the year ended 31 August 2013, the company stated that the values are credible and are reflective of the current market.

Prime Time managing director, Sandy Kelly said that together with the cost of new acquisitions and improvements this year, the total value of their properties has increased by almost eight percent from P550 million the previous year to P544 million in 2013.

“Market value of properties continues to increase confirming the quality of the properties in a competitive market,” Kelly said. Prime Time contractual lease revenue increased 13%.  Kelly said the company vacancies stands at 0.8 percent (four small units) of their rental space.

He said the shift in commercial tenants from other areas in Gaborone to the CBD is now apparent. “It is important for us to keep our properties in other locations relevant to the market demand to ensure tenancies,” he stated.  

In order to maintain their quality tenants base, Kelly said they spent over P4 million on refurbishments on their existing properties. “All of this work has come at a cost, and the board decision to fund these improvements from profits has resulted in the debenture interest distribution being lowered slightly this year,” he explained. He said they are confident that their unit holders will appreciate the longer-term benefits of the strategy.

Kelly said they are now a few years into their leveraged model with capital repayments being made on several of their facilities. “With each new acquisition, the board continues to seek an efficient mix of debt capital, both in terms of interest rate structure and repayments terms, in order to maintain the highest level of profit distribution for unit holders as possible,” he said.

In their growth strategy, Kelly said the company has invested P12.4 million in two properties in Zambia. The properties were purchased on a sale and leaseback basis from G4S. “These started contributing to income from 1 January 2013,” Kelly said, adding that they continue to evaluate additional acquisition opportunities in Zambia.

He said they are not only focusing on Zambia, they are also looking at opportunities in Mozambique, Tanzania and maybe Kenya. “The strategy of diversification into Zambia/other SADC regions will continue, with more investment opportunities being sought,” Kelly said. He added that they want to diversify away from Pula.