PrimeTime Property Holdings Limited says the construction of Pilane Crossing mall is underway and will be completed by next winter. The Botswana Stock Exchange (BSE) listed company stated in its financial results for the year ended 31 August 2015 that the shopping complex will be complete by July next year.
“A retail shopping centre is under construction at Tribal Lot 439 Pilane,” the company said in a statement accompanying the results.
“The total estimated cost to complete this development as at 31 August 2015 is P73, 500, 000. The development is expected to be complete by 1 July 2016,” it added.
The mall was developed following a market research that showed the Pilane/Mochudi area currently has limited retail facilities while demographic data indicated strong demand in the catchment area. Prime Time further explained that the conclusions have been supported by strong tenant demand for retail space at Pilane Crossing from national and regional retailers, with substantial take-up at the centre even before a full marketing campaign.
The project is part of other projects that the Botswana Stock Exchange (BSE) listed variable rate loan stock company is undertaking as part of its intended strategy to grow and diversify its asset base.
The sales of Blue Jacket Square and Barclays Plaza in Francistown to Botswana Public Officers Pension Fund (BPOPF) are close to completion, and Prime Time believes the sale price achieved represents an excellent return on its initial investment.
“We will redeploy the proceeds into projects that we believe offer greater growth potential in the long-term,” said the company in a statement.
The deal is to sell Francistown assets to BPOPF was sealed for a consideration sum of P71 million gross of agent’s commission and other transaction costs, payable in cash with the aim of the disposal part of the execution of PrimeTime’s strategy to create long term value for linked unitholders.
“Amongst these is the development of the Pilane Crossing Shopping Centre, a circa P100 million project we entered into following linked unitholder approval in June 2015. With completion not due until the middle of next year, we already have approached 90% occupancy on the first phase,” PrimeTime added.
The company said its view remains that there are still opportunities to be found in Botswana, but “we have to work harder to find them”. In the CBD office market, with Prime Plaza fully let, we may have appetite for more commercial space.
“We believe there is still demand for the type of niche property which is PrimeTime’s signature. This works well for a variety of occupiers as has been proved with Prime Plaza.”
The Pilane project is being 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.
Primetime results reflected a 19 percent increase in contractual lease revenue to BWP84.0 million (FY’14: BWP70.3 million), although with a 6 percent decline in the bottom line, at BWP61.4 million (FY’14: BWP65.4 million).