RDC Properties Limited, the Botswana Stock Exchange (BSE) quoted property outfit, is bullish that it will re-classify Masa Centre, which took longer time to complete, as an investment property in the 2012 financial year.
The centre, which is hailed as Botswana’s version of Mandela Square in Sandton, was months behind and was made worse by the bad publicity it attracted after its casino license was revoked and African Sun pulled out as hotel operators.
However, the worst seem to be behind as the RDC managed to post better results, showing gross revenues rose 7 percent from P30.7 million to P32.2 million, according to full year results for the period ended 31, December, 2012.
Profit before tax rose by 203 percent from P42 million in the prior year to P127.5 million and profit after tax stood at P99.6 million from P31.5 million.
“The results of the group are pleasing as the portfolio is showing a stable growth with a vacancy rate of less than 1 percent and a significant growth in the property portfolio,” said the company in a statement accompanying the results.
RDC’s investment and property portfolio value grew up by 31 percent to P608.6 million from P464 million in the prior year.
The company said the property market remained sheltered during the period and there was an increase in demand for both good commercial and residential properties.
“The rentals are generally stable even though the market is now sensing an increase in supply of properties, especially in the office sector,” RDC said. “The new Central Business District continues to attract significant interest and the company is well positioned to take advantage of this with the completion of the Masa Centre, which will start contributing to revenue in 2012.”
The works on Masa were substantially completed by the end of 2011 and a temporary occupation certificate was granted in December. A number of tenants are still doing their fittings and it is anticipated that the work will be completed during the first quarter of the year.
The hotel at the centre also changed operators from African Sun Limited to Lonrho Hotels. With the lease concluded early in the year, the hotel will be operated at a five-star rating.
Masa Center is billed as one of the iconic buildings that are geared to change the Gaborone landscape.
It is replete with modern cinemas, hotel, restaurants, post office, office space and shops. The centre has been infused with the news that the entertainment aspect has been enhanced with a night club associated with the hotel, a Chinese Fusion cuisine restaurant, an African cuisine restaurant and a high end Gym.
RDC has also completed leases with prominent high end brands including Apple, Bang & Olufsen amongst others.
The company said it re-opened the Isalo Lodge in Madagascar this month and early indications of forward bookings revised occupancy estimated for 2012 is 28.83 percent. An independent analysis of the lodge potential within the market is predicting Isalo to break even early next year.
The lodge is also buoyed by the Air Madagascar decision to open a route with light aircrafts from the capital and Tulear to Isalo and a mining project will start soon, 60 km from the park.
RDC said it has declared a final dividend of 0.54 thebe per share and interest of 26.86 thebe per debenture payable on 1, June, 2012 to the unit holders registered at the close of business on 27, April, 2012.
