PrimeTime�s expansion gathering pace in 2017
Staff Writer | Friday January 13, 2017 13:57
An Extraordinary General Meeting was held in Gaborone on December 21, 2016 at which 90% of the issued share capital and issued debentures in the company were represented and voted in favour of the proposed transaction.
PrimeTime’s latest acquisition is a prime retail centre of 7,500 square metres in the upmarket central Lusaka neighbourhood of Kabulonga. The retail centre is anchored by Pick n Pay and Woolworths and has a strong presence from international and local retailers, banks, and food and beverage outlets. Tenants include Pizza Hut, KFC, Nandos, Mugg & Bean, LG, FNB, Standard Chartered, Mr Price, MTN and many more.
The property will provide PrimeTime with a sizable dollar income, in addition to the rentals generated at the PwC Office Park, also in Lusaka, which was acquired in March 2016.
“We are delighted to have received such strong support from our investors, which I believe reflects the confidence held in our management team and the long-term strategy that we have laid down for the continued growth of the company.
“The Kabulonga Mall is an excellent addition to the PrimeTime portfolio, being an end product that we understand well, with a well-balanced and high-quality tenant base including a number of occupiers we have established relationships with in Botswana,” PrimeTime’s asset manager, Joe Simpson said. The Kabulonga Mall was developed by Pylos Zambia, part of the Belgium-based Pylos Group who have successfully developed commercial property in Europe, South America and Africa. As the developers of the mall Pylos have provided PrimeTime with a rental guarantee, which reflects a 9.25% return in the first year of operation. The property was recently valued by independent valuers Knight Frank at just over $17.3 million.
PrimeTime also acquired a plot in Chirundu on the Zambia/Zimbabwe border for which it received unitholder approval to develop a shopping centre with Time Projects Zambia at the end of October last year. The development of some 5,000 square metres will be anchored by Shoprite, Hungry Lion and PEP and is expected to commence development early in 2017.
The new acquisitions are being financed through a further issuance of PrimeTime’s bond programme and 12-month Commercial Paper.
PrimeTime’s managing director, Sandy Kelly commented: “We had an extraordinary response to the two rounds of fundraising that we undertook in 2016, with demand exceeding our requirement on both occasions. It is a testament to the success that PrimeTime has had in unlocking investment opportunities beyond Botswana’s borders that demand for the company’s notes has been so strong.
Domestic opportunities are proving difficult to secure given the level of competition locally for limited product and an imbalance in supply and demand making us cautious in our Botswana expansion plans. “I am pleased to see the efforts we have been making to diversify the portfolio outside of Botswana begin to gain some significant traction. Our 2017 year end results will demonstrate the substantial strides that we have made in this regard. PrimeTime has identified further targets to consolidate our expansion in the coming year.” PrimeTime’s year end results showed total assets in excess of P1 billion for the first time with a vacancy rate well below the prevailing market rate at just 0.2%.