PRIME TIME OPTIMISTIC INTO POST COVID-19
As the economy recovers post COVID-19, Prime Time says, it is well-placed to grow off its strategically positioned land bank of plots dotted across the country.
The company is a Botswana Stock Exchange listed company. “The company expects to deliver its new retail centre, Lobatse Junction in the fourth quarter of 2021. The shopping centre is 95 percent let and set to be a dominant player in the node. “Other pipeline developments backed by strong tenant demand include an extension to the Boiteko Mall in Serowe, Phase II of Prime Plaza in the Gaborone CBD and additional office space at Pinnacle Park in Setlhoa, once the funding model has been secured,” said Prime Time Managing Director, Sandy Kelly.
Kelly who is also one of the major single shareholders in the property outfit said the BSE listed company anticipates to report positively on increased occupancy, good tenant retention, and strong demand for its new developments with new properties, despite prevailing challenges. “Going forward, our strategic focus will remain on tenant management, property maintenance, sectorial and geographical diversification as we believe these will have the combined effect of maintaining the value of the company’s assets in the longer term,” said Kelly. The plans to gear up development comes as the company reports solid operating performance for the six months ended 28 February 2021, despite economic headwinds.
“Our hands-on approach to asset and property management saw us reduce vacancies across the portfolio from five percent in the prior financial year to three percent, despite harsh economic circumstances. The company has also managed to keep operational expenses under watch. “We cut operating costs by ten percent year-on-year and further renewed a number of key leases. Our tenant retention initiatives are bearing fruit with several leases being re-geared to keep key tenants in our properties,” said.
According to the company, the main contributors to the reduction in vacancies were the company’s Zambian properties where vacancies dropped significantly from 11.5 percent to 3.5 percent for the period under review. Significant vacancies let include space at Morula House in the Gaborone CBD and Chirundu Centre in Zambia, which are both fully occupied,” said Kelly. He further said letting at Pinnacle Park has been most encouraging despite the tough trading conditions, with the asset now 80 percent let, and a further 10 percent of the gross let table area under negotiation.