Prime Time Property Holdings Limited said whilst there may be opportunities within Botswana, it is pursuing its strategy of looking beyond the borders.
The company is currently negotiating on some more prospects in Zambia while also looking at Mozambique, Tanzania, Kenya and Uganda for possible opportunities.
“Whilst there is obviously huge opportunity in Nigeria and Angola, the entry barriers are extreme and probably only really worth pursuing for much larger investments than what we would consider,” said Board Chairman Petronella Matumo and Managing Director Sandy Kelly in the company’s latest annual report 2013.
Prime Time Property said although the pure financial returns for the year have been fairly flat, the company has invested in upgrading and re-engineering the properties both in terms of refurbishments and renegotiated and extended leases which has positioned the company for excellent stable growth.
“The debt funded expansion model should provide unit holders with substantial long term increase in wealth. Our prospects outside of Botswana should diversify our risk and provide income and investment value growth,” reads the statement.
The property outfit is now a few years’ into the leveraged model with capital repayments being made on several of the facilities. Following its model will result in greater net asset value in the medium to longer term.
“Our growth strategy remains in place, and through the acquisition of suitable investments our target is to grow the portfolio value to P1billion in the next three to five years. This may result in distributions for the next few years being flat or marginally reduced, but with unit holder wealth being increased in the medium to longer term,” said Matumo.
On the company’s new developments, the Property Outfit said much has been achieved during the year adding that its landmark was the securing of Barclays Bank of Botswana Limited for the third building in Prime Plaza on a 10 year lease.
Prime Time is also optimistic that construction of the building is well underway with completion scheduled for the third quarter of 2014, with a current estimated cost of P110m. It is said that it will form an imposing backdrop to what is already a world class office complex.
The second building was completed at the end of 2013 and already tenants have been secured for two thirds of the building, namely Stockbrokers Botswana, GIZ who are both relocating from Letshego Place and Cresta Marakanelo.
“At an estimated cost of P33m it is within budget and on program. These two buildings, together with CEDA House will form a strong core in the new CBD for us,” reads the statement.
Prime Time’s overall trading profit before fair value adjustments and deferred tax is marginally up by 2 percent. Rental revenue is up from P57.4m in 2012 to P65m in 2013 as a result of a full years’ contribution from CEDA, the addition of the Zambian properties and rental escalations which increased by 5 percent despite rental reductions in some properties.
