Prime Time Property Holdings Limited sounded warning bells to the markets last week about its intention to float on the Botswana Stock Exchange (BSE), with a view of extending its portfolios beyond the borders of the country.
The move is part of the organization’s celebration of its 21st birthday to wire Batswana into the financial markets.
“This is a great birthday present that we are bringing to all Batswana. We could have sold this portfolio but we like it so much and we are inviting some investors to subscribe for some shares,” Alexander Kelly, a director at Prime Time Property Holdings Limited, said.
The well diversified property is the second in line to seek listing on the BSE following, Turnstar Holdings which owns the gigantic Game City Mall. Prime Time Property is an offshoot of Time Projects and intends to raise nearly P200 million by floating 80 million unit shares at 125 thebe each. The move will hand-over 56 percent of the company to investors while the remaining ones will be in the hands of promoters.
“Investors should be comfortable because they are going to be with us and walk with us. It is difficult for us to continue with this kind of growth, going forward with our limited resources,” Kelly added.
The company is well diversified and owns some good quality buildings in some prime locations in Gaborone, Gantsi, Francistown, Lobatse, Ramotswa and Serowe. Some of the prime buildings include the UN Place, South African High Commission and Bank Gaborone headquarters.
“We have a diversified portfolio; and not only that, they are in the prime areas. We also have some good quality tenants,” he added.
“The company is a variable rate loan stock company and will derive its revenue primarily from property rentals. The primary purpose of Prime Time is to offer investors secure, growing income stream through investment in high quality property portfolio. The property will acquire the properties currently owned by vendors by way of acquisition agreements which are available for inspection,” the company said in its prospectus that was issued last week.
Out of the money it is trying to raise, P32 million will be set aside for possible acquisitions. The company is also looking at expanding into the rest of Africa with a hawk’s eye on southern and East Africa. It further committed itself to stay on course with its investment strategy saying that it will stick to commercial, corporate and, in some cases, retail markets in terms of property development.
“The listing offers an opportunity for Batswana to its well diversified and wide-spread investment. Though property investment is new to Botswana, in other countries it is well developed,” Tsipha Mothibatsela, chairman of Prime Time Property Holdings, said.
The company’s sponsoring broker, Stockbrokers Botswana, recommended its share as a buy adding that the long term view is that the share price is valued at 141 thebe.
“The properties (owned by the company) are largely fully let at 98.5 percent with many blue chip tenants including commercial banks and international retailers,” Stockbrokers Botswana said in its research note issued on Thursday.
The company is expected to make its median floating on December 22.