RDC expands property portfolio
Pauline Dikuelo | Monday August 15, 2016 14:18
The construction of the P40 million ICC residential flats, which is funded by BIFM through a loan facility, has already commenced.
Speaking during the RDC properties financial results announcement recently, the group chief operating officer Uzoma Anugom said the flats would be built in three blocks, with 20 one bed-roomed apartments, 15 two bed-roomed apartments and 10 lofts.
“Construction of these up market flats commenced about four months ago, which is in April,” said Anugom.
He added the refurbishment and rebranding of the Masa Square Hotel have been completed along with the addition of the now fully operational 30 Masa Executive suites which currently has 60 percent occupancy.
“The suites are operated by Masa Square Hotel and the response from the market has been very good. We are delighted to announce that the Gaborone West Warehouse extension is now complete and currently at 71 percent occupation. The demand for these type of industrial units has been robust,” he added.
About 50 percent of the RDC Properties leases come to an end in 2020, while 19 percent of them end in 2019, 15 percent in 2018, and 20 percent next year.
For the year ended 30 June 2016, the group’s profit before tax increased by 42 percent to P26.2 million aided by the interest received on proceeds of the rights issue. Profit from operations increased by eight percent to P29.7 million with rental income up to P41.7 million, which has been attributed to the performance of the Chobe Marina Lodge. The lodge is said to be benefiting from growth in the tourism industry and excellent management of the property.
From RDC properties’ portfolio, about four percent is occupied by industrial, 23 percent by retail, 34 percent office, three percent by residential property and 38 percent by hospitality.
According to the group executive chairman Guido Giachetti, they are currently focusing on a regional diversification noting that in Namibia they have already signed a Memorandum of Understanding (MOU) with partners for their proposed retail developments in the north of the country.
“The preliminary designs, market research and feasibility study are underway for many centres around the country in Namibia,” he said.
The group has also singed a MOU with partners for retail developments at two sites in Mozambique, one in Xai Xai and the other in Zimpeto, Maputo. The MD said that both sites are in excellent locations noting that another option to purchase is also being finalised for a retail development in Xiquelene, Maputo.
However the group noted that the South African proposed development of a business hotel in the CBD of Cape Town has been set aside as some issues arose with the subdivision of the property, which was a condition precedent.