PrimeTime buys property in Zambia

Isaac Pinielo | Tuesday May 10, 2016 10:55

The 4,000 square metres property has been bought by PrimeTime Property Holdings (Zambia) Limited, a Zambian registered company and wholly owned subsidiary of PrimeTime Property Holdings Limited, from Rumpuns Trading Limited.

According to a statement issued yesterday, the property, purchased at $8.8 million (P92.96m), is a tenanted, commercial office park that encompasses three separate buildings, namely Cavmont Bank, PwC and John Snow International, each leased to a single occupier. “The property is being funded by $5 million amortising loan from Barclays Bank Zambia Limited the balance from funding raised in Botswana,” said the company. PrimeTime managing director, Alfred Kelly said the transaction is part of the execution of PrimeTime’s strategy to continue growing the property portfolio in order to create long term value for linked unitholders, as the loan is paid down and its earning ability increases. He added that the property, with a market value of $10 million, has been purchased as an investment with “blue chip” tenants.

“Due to its location it will diversify the current geographical spread of PrimeTime’s properties. The impact of this transaction on the net assets of the group is estimated to be 7.11 thebe per linked unit and the impact on the net profits of the group in its first year of acquisition is estimated to be 0.8905 thebe per linked unit,” he said.

Kelly said the value of the property was arrived at by a valuation carried out on May 6, 2015 by independent valuers, Pam Golding Properties Zambia Limited, adding that title to the property passed in February 2016 with rentals accruing from March 1, 2016.

Meanwhile, PrimeTime announced that it is in the process of establishing a P500 million domestic medium term note programme to enable it to continue its strategic goals.

It indicated that the debt programme would enable the company to grow and diversify its portfolio in the interest of developing long-term shareholder wealth, while structuring debt to minimise its impact on distribution.