RDC Properties Limited, the Botswana Stock Exchange (BSE) quoted property laity, brightened shareholders faces with solid results but admitted that its trail-blazing square in the heart of the CBD is running behind schedule.
The square, famously known as Masa Center, is billed as one of the iconic buildings that are geared to change the Gaborone landscape. The construction of the square ÔÇö replete with modern cinemas, hotel, restaurants , post office, office space and shops ÔÇô is expected to be completed by mid this year, according to the audited results to December 31, 2010.
This means the building will be behind schedule by nearly 12 months. The delays are ascribed to default by one of the key sub contractors, red tapes in the disbursement of funds and stringent standards imposed by the hotel operator, Holiday Inn.
The hotel will be 4-star graded and will be one of the key holiday-makers attraction places in the country.
According to the financial statement, gross income jumped up by 7.45 percent to P 29 million while profit before fair value 35 percent better at P23 million.
Distribution to unit holders was 71.8 percent better to 58 thebe per linked unit compared to the corresponding period in the prior year.
However, it warned that borrowing appetite nearly hit the ceiling; at present it stands at P 187.72 million ÔÇô representing 40 percent of its investment portfolio ÔÇö mainly because of Masa funding.
The company had to approach Barclays Bank of Botswana towards the last quarter of last year for a P 90 million funding package to ramp up the construction of Masa Centre.
But the company, which ranks at the bottom of all BSE listed property outfits, said its Ivy League type of developments will come on stream this year and are expected to bolster its balance-sheet.
The projects include Masa Centre and Isalo Rock Lodge in Madagascar, whose full year impact will be felt this year. The lodge was opened in July last year and its management has been awarded to Signature Life.
RDC Properties boost of a number of lucrative buildings that include Standard Chartered House, Mebala Complex and Tholo II.