Masa Centre boosts RDC Properties profits

BOITSHEPO MAJUBE
Correspondent | Monday May 27, 2013 00:00

 

The group's profits from operations increased by 74% to P25,350 million compared to P14,564 million in 2012. With sterling financial results, an interim dividend of P0.32 thebe, per share and interest of 16.21 thebe per debenture has been declared.  The board say despite competitive property market in Botswana, due to increased supply of available office space, the strategic positioning of Masa Centre in the new CBD and its mixed-use nature will enable the group to benefit from this concentration of businesses in the new CBD.'The Centre has now established itself as a preferred destination for business travellers in Botswana looking for a one stop environment to meet their business and entertainment requirements', the board said.

The group revenue increased by 59%, to P30,462 million, compared to P19,145 in 2012. 'The profits before tax increased by 13% to P13,007 million compared to P3,034 in 2012', board said. They further noted that this comes at the back of a 307% increase in net finance costs to P12,343 million against P3,034 million in 2012, caused by expensing of borrowing costs which were previously capitalised in the Masa Centre development.RDC says the investment and property portfolio increased by 14% to P764,102 million, with Masa Centre being recognised as an investment property at fair value.

'The property known as Plaza on Lots 4787 and 4788 Gaborone, was sold in January 2013 for a net consideration of P26,5 million', the board said, adding that part of the proceeds were used to purchase Real estate Office Park in Gaborone, for a consideration of P11,5 million.RDC Board said following the 2012 company's interim and financial distribution by way of capitalisation options which took place in October 2012 and April 2013, the linked units issue are now 35,653, 252.'Linked units comprising 324,358 were listed on the 24th of October 2012, and 295,765 linked units were listed on the 17th of April 2013,' the board said.