RDC CONSIDERS REMOTE WORKING A PASSING PHASE

The outbreak of Covid-19 pandemic has transformed businesses and working environments as most companies were forced to adopt working from home initiatives to reduce office occupancies. This brought some uncertainties in the office property investors.

RDC Properties Group Chairman, Guido Giachetti said although most businesses chose working from home and adopted virtual conferences this has not been a threat to RDC Properties as working in offices will never be obsolete.

“Remote working was adopted by many businesses and it has been good. However, working from office will still be relevant despite circumstances. We had most of our tenants practicing working from home especially in the USA market, but we are certain that people will still need offices.”

RDC owns 22 properties in Botswana with about 174 active tenants in office properties.

In his presentation last week, Giachetti said COVID-19 continues to be the single biggest Macro Economic trend affecting the Group in 2021. “The impact on the economies of Botswana and South Africa continues, with extended lock downs and a slower than expected vaccine roll out. Against this backdrop, we are pleased to present the Group’s results for the half year ended 30 June 2021 which demonstrate the resilience of the portfolio and the strong base from which the Group is further diversifying through the proposed acquisition of Tower Property Fund Limited.”

RDC Properties Chief Operating Officer, Uzoma Anugom said the company has offered concessions to most tenants and rent referrals to those who were struggling with loans to pay but this has not affected the Group’s profit for the period. “All our tenants are very cooperative and we have not recorded any bad debts. Those who were negatively affected by Covid -19 were able to discuss with us and we had payment agreements.”

RDC Properties revenue was boosted by the strengthening of Rand and acquisitions resulting in a six percent increase in the investment portfolio to P2.35 billion. Revenue increased by 17 percent to P72.5 million due to the acquisitions in Capitalgro which resulted in 9percent increase in profit from operations of P45 million despite the reduced impact of foreign exchange. Giachetti said in USA operations, the Group completed the second tranche of The Manning in July last year, completing the Group’s investment program for the USA. “The Research Court Asset continues to perform well with low vacancy and strong demand underpinning an 8percent yield, realised monthly. The Manning development continues with US$81.5m of sales committed and only 11 units remaining, and the project remains on target with an expected realisation date of Mid-2022.”