LLR expansion project remains on track

Letlole La Rona (LLR) has announced intentions to swiftly execute the company’s growth blueprint targeting properties outside the country’s borders.

“We will implement our ‘Go to Africa’ strategy in a careful and calculated manner, alongside comprehensive risk mitigation plans to protect value as we scale up our business,” said LLR Interim Chairman, Oteng Keabetswe in the company’s integrated annual for report 2022.

Launched in September, the strategy sees the undersupply of quality industrial sector assets across the African continent as a prevailing opportunity in the short- to medium-term.

“We want to leverage our wealth of skills and relationships to enter the broader African market strategically,” said Keabetswe, adding that LLR has consistently delivered good returns to its shareholders.

“And we place priority on defending that reputation and building on that solid foundation,” he added.

Keabetswe emphasized that the company is committed to ensuring that every decision and action it takes delivers incremental value gains.

“During the coming financial year, we will be reassessing and optimizing our capital structures to ensure that they continue to serve as a significant growth lever for our business into the future.”

He said the company will also prioritise rebalancing its asset portfolio to facilitate geographical expansion aspirations.

So far the first investment outside of Botswana is Orbit Africa Logistics (OAL), where LLR acquired an initial 30 percent equity stake, with an option to increase this investment to 50 percent.

OAL is a special purpose vehicle incorporated in Mauritius, owning an industrial asset in a prime industrial node in Nairobi, Kenya. The co-investment is done alongside a wholly owned subsidiary of London listed Grit Real Estate Investment Group, one of the largest property investors on the African continent.