The unitholders of PrimeTime Property Holdings Limited have given the company the go ahead with the development of Pilane Crossing in the Kgatleng area. Last month, the listed property group issued a circular to shareholders outlining its plans to develop the mall, arguing that there is high demand in the area. There was a proposal for an Extraordinary General Meeting (EGM), which has since been held on Wednesday to vote on the ordinary resolutions proposed by those in charge of unlocking shareholder value.
The EGM resolved that the developments by the company on the Pilane Plot on the terms and conditions authorised in the circular, be approved.
“The Resolution was passed by 46 votes in favour (both present in person and represented by proxy), no votes against and two abstentions. The resolution was carried,” said the company on Friday.
The other resolution wanted to authorise any director of the company to do all such things and sign all such documents that are necessary to give effect to the resolutions passed at the meeting. The resolution was passed by 46 votes in favour (both present in person and represented by proxy), there being no votes against and 2 abstentions. “The resolution was carried”.
According to PrimeTime, 48 unitholders were represented, either in person or by proxy, who held in total 107 911 474 Linked Units (each Linked Unit consisting of one share and one debenture indivisibly linked) which represented 86 percent of the issued share capital and the issued debentures, excluding those held by the related parties to the proposed transactions ÔÇô as defined by Section 4 of the circular dated 6 May 2015.
The Pilane Crossing will be developed after PrimeTime entered into a Development Agreement with Time Projects, in terms of which Time Projects will develop a retail shopping centre on the Pilane Plot at an estimated cost of P75.2 million.
The total cost of the development, including the acquisition of the land, its servicing and related professional costs bring the estimated total investment cost in the development to P96.8 million.
So far, a significant portion of the funding required for the development has been secured and the funding has been secured at competitive rates. PrimeTime said is it was also in discussions with financial institutions regarding securing the balance required for further financing for the scheme.
“PrimeTime has been guaranteed a net return of 9.25%, meaning the final sum payable will be determined by rentals agreed on opening and independently valued rentals should any units remain empty at the time tenants in the improvements first pay rental,” PrimeTime said in a circular last month ahead of the EGM.
“The plot offers opportunity for further growth, with two further phases possible capable of adding approximately 3,000 sq m of additional lettable space.”
PrimeTime’s current portfolio encompasses the retail facilities; Boiteko Junction in Serowe, Plot 29 in Ghanzi, Hillside Mall in Lobatse, Mantlo House and Nswazwi Mall in Francistown, Ramotswa Shopping Centre and, Sebele Centre and South Ring Mall in Gaborone, all of which were developed by Time Projects.
The existing property portfolio of the Company was independently valued at P732 million as at 31 August 2014.