Trading licences standoff impairs PrimeTime

Pauline Dikuelo | Tuesday May 30, 2017 16:03

Commenting on the group’s interim results for the half year ended in February this year, Kelly said the vacancies, which were due to a standoff between government and foreign retailers, would be felt on their books despite efforts to mitigate the loss to the company. “We are now hopeful however that by the end of 2017, the centre will be fully occupied and delivering a retail experience to the local community as originally envisaged at the outset,” he said.

Following an impasse between the South African retailers and the Ministry of Investment, Trade and Industry, Pilane Crossing was officially opened last September without some of the targeted tenants who were denied trading licences. At that time, PrimeTime said about 30% of their targeted tenants, who are South African retailers, had failed to secure exemptions to trade in businesses reserved for locals. “Two of the affected five retailers have now obtained their trading licences with a further two having received their exemption from the Ministry of Investment, Trade and Industry pending gazetting. We are expecting Clicks to open in the centre within the next few months and Edcon’s Jet by the end of September 2017,” he said.

On other tenants, Kelly said the AFA lease was renewed for a further two years until October 2018, from January 2017.  The G4S Zambia lease converted from kwacha into dollar while Cresta Marakanelo renewed for a further five years at Marula House in the CBD. The managing director also noted that later this year CIPA would replace CEDA in the CBD on a new five-year lease. Included in the group’s major refurbishment and maintenance plans this year, a new passenger lift at Letshego Place will be added as well as some external maintenance at Boiteko Junction Serowe and a 300 metre square extension at Sebele Centre which is scheduled to open by the beginning of November this year. “Our first retail investment in Zambia, the Central Kabulonga in Lusaka was completed at the end of January 2017. This is a new development acquired from Pylos, a Zambian developer that opened in December 2016. Anchored by Pick’n Pay with Mr Price, Woolworths, several bank branches and restaurants providing a good tenant mix. This represents a significant investment for PrimeTime with an acquisition cost of $17.3 million,” he said.

The group’s profit for the year went down to P24 million compared to the P33 million that was recorded in the previous year on the corresponding period.  The decline in the profits is largely attributable to the profit from disposal of properties that was recorded in the previous reporting period.  Last year PrimeTime realised P71 million from the sale of its two Francistown properties to the Botswana Public Officers Pension Fund (BPOPF).