PrimeTime Looking To Expand Portfolio In SA
Pauline Dikuelo | Monday January 11, 2021 15:06
The move will be an addition to the already existing acquisitions they had made in South Africa, which include an R85 million mixed-use property in Brynston and a R50 million logistics warehouse in Johannesburg.
This was revealed by PrimeTime’s managing director, Sandy Kelly, when commenting on the group’s financial results for the year ended August 31, 2020. In the commentary accompanying the results, Kelly highlighted the group’s plans to increase its assets in the neighbouring country in the next six to 12 months.
“The achievement of the first investments has marked the start of the planned portfolio of properties in South Africa,” he said.
“There are opportunities to acquire in the South African market which offers heavily discounted investment grade stock.”
PrimeTime has office, retail and industrial buildings in Botswana, South Africa and Zambia with market value of more than P1.6 billion.
In Zambia the group is filling the remaining vacancies at Chirundu and Munali malls, a process, which has stalled over six months. Equally, the proposed solar installation at Kabulonga Mall is now at the planning stage.
“G4S, a tenant at two of our properties in Zambia has a requirement cash centre to be developed for them on one of the existing sites and we are in discussions with funders for a tentative build start date in the first quarter of 2021, with costs estimates being $520,000 which will be rentalised,” Kelly added. Locally the group will be exploiting more development opportunities including the next phase of the Gaborone based Prime Plaza, extension of Boiteko Junction in Serowe and Refurbishment of South Ring Mall. Further, Kelly said the outbreak of the COVID-19 pandemic has affect their rental income forecast as the group gave the affected tenants discounts during the period if government-imposed trading restrictions. He said the disruptions extended into letting vacant and new space.
“We assessed tenants individually, applying an appropriate support package to each. To date this strategy, combined with our limited exposure to the hospitality sector has paid off with minimal tenant failures reported,” he said.