PrimeTime profits decline

KEIKANTSE LESEMELA
Correspondent | Thursday May 30, 2013 00:00

 

'With government tightening its purse strings, disposable income - particularly in the outlying areas more reliant on public sector employment - is taking strain. In addition, the emergence of new office space in Gaborone has put pressure on rentals in the other areas of the city,' reads the company's published results on the Botswana Stock Exchange (BSE) website.The company says although disposable income, which is particularly reliant on public sector employment, is strained, the annual revaluation of the property portfolio showed a P26 million increase over prior values, being cost for new additions and prior year value for existing properties. 

However the cost of new acquisitions this year and the total value of the company's properties has increased by over 13 percent from P445 million in 2011 to P505 million in 2012.In a statement, the company indicated that it is adopting strategies to strengthen its asset base through putting some profits back into several major improvements to existing properties.Recently, the company purchased properties in Zambia for investment with conditions of sale and leaseback to the vendor.

The buildings were purchased for a total of P12.5 million. A number of other buildings are under construction in the new CBD. Meanwhile, PrimeTime Managing director Sandy Kelly recently explained that continuing depressed economic conditions, lack of government tenancies and the movement to the new Central Business District would affect rentals and values in the Main Mall. In related developments, Letshego House, South Ring Mall and Ghanzi Mall are currently undergoing renovations. Some properties in Francistown are undergoing improvements.