DPF in P170 million property buying splurge
Brian Benza | Friday April 1, 2016 18:00
As part of a new investment strategy, which allows the pension fund to invest upto P800 million in properties, the DPF is on the lookout for quality domestic investments.
“In late 2015, the DPF Board approved the acquisition of approximately P170 million worth of domestic property investments. However, the DPF is unable to discuss the details of these property transactions as they are currently awaiting approval by the Competition Authority (CA).
“The Fund does have plans to continue to acquire additional property investments,” DPF communications manager, Agatha Sejoe told BusinessWeek.
While Sejoe could not divulge details on the transaction, industry insiders say DPF has tied up a deal to buy 25 percent stake in Molapo Crossing Mall while another transaction to buy a further 33 percent stake in a mall at the Gaborone Station from BDC is being finalised. Other deals being finalised include the purchase of a 29.08 shareholding the Gaborone Private Hospital (GPH) property as well as 100 percent stake in the Cresta Jwaneng Hotel.
As at December 2015 the DPF assets in total were valued at P 6.4 billion, with 42 percent of it invested in Botswana in various investment vehicles including the BSE. “The Fund is always looking for great domestic investment opportunities,” added Sejoe.
According to insiders close to the transactions, DPF had also planned to buy 100 percent of Airport Junction mall but the deal fell through.
The DPF membership as at December 2015 was 11,772 members, of which 5751 are Active Members, 2445 Deferred members and 3576 Pensioners.
Confirming the Cresta Jwaneng deal, the CA this week announced it had received a merger notification for the proposed acquisition of lot 5483, Jwaneng, together with land, buildings and improvements, comprising, inter-alia, a fully developed commercial retail property owned by United Promotional Enterprises (UPE) by DPF.
UPE, the target enterprise is a citizen-owned company owned by Wilfred Kathurima and Muwindwa Doreen Kathurima in equal shares.
In Gaborone, the DPF currently wholly owns Tala Court, former Barclays House, Carlton House, Debswana House and Sitatunga Lodge in Phakalane.
The DPF also owns part shareholding in other properties in Maun, Palapye, Francistown and Gaborone.