BDC scales down property portfolio
Pauline Dikuelo | Friday July 28, 2017 15:41
The corporation is selling 32 three-bedroomed apartments at the Grand Palm Sunset and 38 units at Grand Palm Mews in Gaborone. The reserve-bidding price for the apartments in Grand Palm Sunset is P38 million while for the Grand Palm Mews is P25 million.
The sale is conducted through Residential Holdings, a 100% subsidiary of BDC, which was formed to develop the residential market from middle to upper class residential properties.
In an interview with BusinessWeek, the corporation’s head of corporate affairs and strategy, Boitshwarelo Lebang said that this is in line with their investment strategy, as they continually review their business portfolio in line with its mandate and strategy.
“Divestments from investments are an inherent part of the investment cycle and hence periodically we would exit an investment that is considered mature for such,” she explained. According to Lebang, BDC’s strategy is focussed on pioneering new sectors, unlocking value in existing ones and driving private sector growth.
She said the residential property sector is one that they consider mature and the corporation is moving to place some of its investments in this sector in the hands of the private sector and Batswana.
In addition Lebang said the corporation had divested from businesses over the years as seen opportune noting that for the current financial year, it has been residential properties in line with the strategy and mandate.
Two years ago the corporation shed off about 12% of its portfolio, which resulted in them, parting ways with Cumberland Hotel, Toro Lodge, and Khawa Lodge as well as disposing of its stakes in Metropolitan Botswana, Asphalt Botswana and Kwena Rocla.
“Divestments are an inherent part of our business and we state all such activities along with other major business activities through our formal reporting structures including annual reports, stakeholder briefs just to mention but a few,” she added.
She further said the next businesses to divest from would be determined by their mandate, strategy and market conditions.
As part of its ambitious strategy to double corporation’s balance sheet in five years, BDC managing director Bashi Gaetsaloe revealed his plans to embark on new projects that will not only boost the industrialisation agenda of the country but also diversify Botswana’s exports composition, which is currently dominated by diamonds.
Industries targeted under the strategy include large scale investments of not less than P30 million in sectors such as energy, in particular solar power plants, manufacturing, agriculture and other infrastructure projects. According to Gaetsaloe, BDC already has P10 billion worth of new projects in the pipeline.