Saturday, September 19, 2020

EXPONENTIAL PROPERTY DEVELOPMENT CREATES HUGE INTEREST FROM YOUNG BATSWANA

Exponential Investments, a Botswana-registered company, was set up by 16 members made up of individuals and companies who share a common vision of coming together as Batswana to develop an “A” grade property investment which will give all stakeholders a good return. As such, the company then acquired a prime corner plot in the CBD measuring 7000sqm for the price of P4 million. The concept for the project is to develop an 8 storey office park, that will address the shortage of office space in Gaborone.

Exponential Investments, feel that the timing is right with regards to the development of this project. “We believe in the early bird strategy of getting the project running as early as possible within the CBD, and we have forecasted that the project will result in good value for the shareholders,” said Dumi Lopang, one of the principal investors. Research has shown that there is real shortage of space in Gaborone, hence the project being 40% let to date.

“The thinking behind this project is to try and get as many young Batswana involved, as we feel that this is a great opportunity and platform for them to make a meaningful investment in a large scale, “A” grade property development project,” said Mathata Gasennelwe, Chairman of Exponential.

The project promoters have decided to have a minimum contribution of P100 000.00, This investment is open to individuals, companies, partnerships and consortia. However, there is no limit on the investment that one entity can make. The project is targeting a return of 11.5% per annum.

The total project cost will be P65 million. “We envisage raising the initial P32 million from individual equity and the balance as debt finance from the financial institutions,” said Gasennelwe.

According to forecasts, the facility will be repaid within 10 years whilst still having sufficient cash flows for distribution to investors, as a result of the high equity levels. Earthworks on the plot and letting of space are already underway, and estimated project completion date is second quarter 2010.

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Sunday Standard September 20 – 26

Digital copy of Sunday Standard issue of September 20 - 26, 2020.