PrimeTime raises P105m for new projects
Isaac Pinielo | Tuesday July 5, 2016 18:00
“The BSE has granted the issuer a financial instrument listing and the notes will be listed on the BSE on the 28th June 2016,” it said.
According to PrimeTime, offers were received for P196 million and the total issuance amounted to P105 million for both the five year floating rate note and the eight year fixed rate note.
PrimeTime managing director, Sandy Kelly said part of the raised notes will fund the development of the 7,500 square-metre retail shopping centre in Pilane and other future projects that are in the pipeline.
“Construction of the Pilane Crossing Mall is on programme and is due to open around 28 August, subject to resolution of the licensing issue with the Ministry of Investment, Trade and Industry,” he said.
Earlier, the company reported that the shopping mall will cost close to P100 million.
Kelly also indicated that the company is looking at further investments in Zambia and at the Gaborone Central Business District (CBD), adding that they have secured two plots at Setlhoa Village near Gaborone’s Block 10 where they are planning new commercial and industrial developments.
The company further stated that the successful subscription by the institutional fund managers is a demonstration of their confidence in PrimeTime as a solid, well performing property fund.
“We see the almost 100% oversubscription to the bond as a very positive show of confidence by our investors to the company and our expansion and development plans both here and in Zambia,” said Kelly.
He stated that the issuance of notes under the programme will enable PrimeTime to continue its strategic goals to grow and diversify its portfolio in the interest of developing long-term shareholder wealth, while structuring debt to minimise its impact on distribution.
“It represents its intention to diversify its funding sources and become a regular issuer of medium to long term debt,” he said.
Meanwhile, Kelly said the property market is oversupplied especially in the regional malls, adding that their focus is on convenience centres such as Sebele Centre where they have seen solid trade and demand.
“Outlying towns such as Lobatse and Serowe have seen some pressure due to the economic downturn, but our centres are stable and trading well,” he said.