Prime Time, a Botswana Stock Exchange (BSE) listed entity, has recorded P63 million in profits for the year, an improvement from the P26 million that was recorded in the prior year on the corresponding period. During the reporting period, the group disposed of two of their retail properties in Gantsi and Ramotswa for consideration of P45 million, which had been redeployed into the group’s Prime Plaza II Motswere building. According to the group’s financial results for the year ended August 31, 2022, the development is progressing well as the first building is expected to be completed in August 2023. Commenting on the results, Prime Time Director Sandy Kelly said they are already in advanced negotiations with potential occupiers for the building which offers a new level of tenant experience in the Botswana market.

“Our strategic pillar of growth will be achieved by gradually building out our development pipeline, adding yield accretive assets and disposing of properties expected to show diminishing returns, where necessary. This must be balanced with our commitment to stabilising our debt-to-value ratio in the short to medium term and achieving income growth,” he said. The group’s local portfolio consisting of 21 properties representing 64% of the group market value saw a reasonable uplift in value of nine percent at the yearend. Rental income was up 11% the prior year and vacancies were just two percent by the end of the year. Lobatse Junction Shopping Centre was 100% let when it opened in October 2021. Valued at P114 million it comprises 9000m² and 39 tenants with Spar as its anchor tenant and a good spread of national retailers. The group also completed the long-planned refurbishment of South Ring Mall in Gaborone at a cost of P2.9 million forming part of their ongoing commitment to maintain and enhance the attractiveness of their assets to ensure long-term tenant retention.

“Our two properties in South Africa have traded well. At six percent of the group market value, they returned a flat performance year-on-year in terms of valuation and indications are we can expect to see an improvement in income going forward,” Kelly said. “The downward movement in the Zambian property values experienced over the last few years has been arrested with our property portfolio there showing a marginal appreciation year-on-year.” The six properties in Zambia make up 30% of the group market value at year-end, including the addition of 187m² of office space to our G4S cash centre in Lusaka, Zambia at a cost of $135,000 to meet the tenant requirement. Significant progress was made in filling most of the vacant space, achieving a country vacancy rate of just three percent by the year-end which has further reduced post-year end.

In terms of tenant mix, across the group, 31% of the rental income is from major corporates, multinationals, banks, and financial institutions, 40% from established retail chains and a further nine percent from the government and parastatal sector, including foreign missions.