PrimeTime to build P100m mall in Pilane
Isaac Pinielo | Friday April 24, 2015 15:54
The asset and property company stated in a press announcement that it has acquired the rights to 4.392 hectares of land held under tribal lease in Pilane.
Two possible further extensions of approximately 1,320 and 1,700 square metres are planned for development at a later stage.
The Pilane plot, registered in the name of Amatrix Developments, has been sold to Prime Time for P6 million and will be transferred into the company’s name when the development is completed.
The total cost of the investment is estimated at P96.8 million, as determined by a 9.25 percent net yield on the annual revenue achievable from this development, which yield is guaranteed by Time Projects for the first two years. Time Projects is a related party to PrimeTime by virtue of the asset and property management services it provides to the company.
“The consideration will be financed from debt and secured over existing properties. An independent valuation, performed by Riberry (Pty) Limited, places an open market value of P96 million on the completed development,” reads the statement.
The transaction is part of the execution of Prime Time’s strategy to continue growing the property portfolio in order to create long-term value for linked unit holders and will enhance the current geographical spread and mix of properties.
The company’s managing director, Sandy Kelly said in the commentary of the company’s unaudited interim financial results for the six months ended 28 February 2015, that the properties have performed well during the interim period. The results showed a 23 percent increase of contractual lease revenue over prior corresponding period. Rental income was P45.3 million during the six months ended 28 February 2015, as compared to P35.4 million in the previous year. Kelly also stated that the company’s latest refurbishments of the South African High Commission and the Sebele Centre to provide a larger space for Woolworths, have been completed within this period.
“Woolworths increased space of 1,600 square metres with a seven-year lease cements Sebele Centre as Gaborone’s preferred convenience shopping centre,” he said. Kelly also said that Marula House, otherwise known as Prime Plaza Phase II, has seen Arup Botswana and Botswana Life taking up tenancies this period, adding that it is fully let.
He added that Barclays Bank took occupation of their new head office in Prime Plaza during August 2014 and so it has made a contribution to turnover for the full six months to 28 February 2015. “These two buildings are the main contributors to the 23 percent increase in contractual rental income during the six months ended 28 February 2015 when compared to the corresponding prior period,” he said.