RDC’S RED RADISSON HOTEL TO OPEN IN JULY
The Botswana Stock Exchange-listed RDC Properties said its latest development in South Africa, Red Radisson Hotel will open for business in July this year.
The group’s Executive Chairman, Guido Giachetti said in the 2020 annual report that the property, which is a hotel located in Rosebank, Johannesburg, is due for final completion and bookings have started to come in.
“The quality of the hotel is excellent and with the addition of very exiting art and sculptural pieces, it is set to be the talk of the town,” he said. “Sales have started in earnest and bookings are starting to come in already. Early indications show that the hotel will outperform its market peers easily.”
The hotel consists of 222 rooms, two floors of meeting and conference venues, a bar and restaurant and a roof top bar boasting views over the Johannesburg skyline. The total cost of the development was initially R400 million and Nedbank had only approved a R200 million facility for the development.
Meanwhile, the RDC said it remains focused on accumulating and developing a quality portfolio of unique properties with potential for rental and capital growth, with a regional focus and diversified income streams as part of their long term objective.
Giachetti said the four main areas of their strategy include selectively acquiring and developing a regional portfolio in Botswana, Mozambique, Madagascar and South Africa.
“We will be seeking out real diversification of the portfolio by region, sector and currency as well as actively seek to balance our portfolio growth between acquisition and development to strike a balance between patient capital and income generation,” he said.
“We also are accelerating yield accretive acquisitions, the positive impact of which will be felt in the years to come.”
Giachetti added that the transfer of the acquisitions under contract in the past year and the minimal impact on key development work, including the Radisson RED Hotel in Rosebank, Johannesburg and the Biotechnology Hub in Woodstock, Cape Town, is testament to the group’s ability to move forward and to continue to deliver in a challenging market where most companies have been exceptionally defensive.
As per the reporting period, the group’s investment and property portfolio increased in total value by 13.6% to P2.3 billion through acquisitions with Botswana representing 62% of this value and South Africa 32%. In Botswana RDC has 22 properties, seven in South Africa and has footprints in United States of America, Madagascar and Mozambique.