Thursday, January 21, 2021

NAP eyes investment opportunities, releases maiden results since listing

New African Properties, the Botswana Stock Exchange (BSE) quoted property outfit, said it remained bullish of rental escalations from existing portfolios and warned the market it was eyeing investment opportunities to add to its existing portfolio.

NAP published its interim financial results for the 6 months ended 31 January 2012 that showed it registered an income from operations of P46, 9 million (before rent straight line adjustment), which exceeded the prospectus forecast of P46,0 million.

At the end of January, vacancies across the group’s property portfolio amounted to 2 percent, but the company’s Managing Director, Tobias Mynhardt, said demand for space in the country is solid.

“The properties continue to perform in line with expectations,” Mynhardt said in a statement.

“Demand for space remains strong and this bodes well for future rental growth for unitholders,” he added.

The almost ungeared property portfolio is valued at P912 million and comprises a portfolio of 65 retail properties, predominantly in Botswana but with some Namibian exposure.

New African Property portfolio is made up of Cash Bazaar Holdings assets, which are sprawled between Botswana and Namibia.

The assets include Riverwalk Mall, Riverwalk Plaza, Kagiso Mall, Kasane Mall, and Mafenyatlala Mall in Molepolole among the 65 properties own by the company. Some of the property largely made up by shopping centers is based outside Botswana.

They have 440 leases over the 65 properties in question and the bulk of them is made up of some of the Cash Bazaar Holdings subsidiaries, such as CB Stores, Topline, Sole Shoes, Taku Taku, Furnmart and Home Corp.

New African Properties portfolio is heavily skewed towards the shopping centers but supported by office space and warehouses.

The portfolio is managed by Nafprop, a wholly owned subsidiary of Cash Bazaar Holdings.

Chief Executive Officer of Nafprop, Odirile Merafhe praised his outfit saying both CBH and Nafprop have significant retail experience as manager, landlord and retailer.

“This wealth of experience will continue to add value to the portfolio with a view to maximising returns to investors,” Merafhe said.

NAP, which listed on the BSE in September, 2011 declared a distribution of 7,23 thebe per linked unit and the distribution will be paid on or about 1 June 2012 to unitholders registered on 18 May 2012.

The company said while taxation impacted on total distributions, the distribution incorporates a 1, 09 thebe dividend which is exempt from tax in unitholders’ hands.

NAPA said while there have been no changes to the portfolio to date management continue to investigate acquisition and development opportunities with a view to securing quality assets to grow the existing portfolio.

“The Board is confident that rental escalations for the existing portfolio will continue in line with original expectations,” a statement accompanying the NAP results said.

“We have identified certain property investment opportunities with a view to securing quality assets to enhance the existing portfolio and are in the process of assessing the investment merits.”

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