GENERAL NEWS
From the MD’s desk
By Sandy Kelly
Sandy Kelly provides a brief overview of the
Botswana economy, the local property industry
and Time Projects’ progress during 2018.
Starting with the economy, respected economist Keith Jefferis stated in the
last edition of his quarterly review that whilst the economy had started to look
more positive for the first time in a few years, it hadn’t yet reflected any real
results. His Excellency, President Masisi and his government are saying the
right things with regard to Botswana being “open for business” with potential
obstacles such as work and residence permits, trading and business licences
being issued easier. However, this still needs to be seen in action on the
ground. The recent announcement of a proposed amendment to the priority
transfer tax law increasing transfer duty from 5% to 30% for non-citizens,
doesn’t mesh with HE’s words in his recent SONA. So let’s see........
The Botswana property industry has been relatively quiet this past
year, with no significant new developments. There were no additional
developments in Gaborone’s new CBD, but a few buildings completed:
The Hilton, Orange and our own Bank Gaborone and Capital Bank
whilst CEDA moved to a new office complex which is still under
construction. We completed the Design Quarter in Setlhoa for PrimeTime
and Airport Junction completed its expansion further cementing this as a
significant node for the future.
Elsewhere, Palapye’s retail offering is seeing a challenge posed to at least
two of the new malls completed with Nafprop’s Bus Rank Mall being the
only likely survivor due to its superior position plus the recently refurbished
Engen Centre which should also continue to do well. Residential
development has slowed making the market more favourable for buyers
or tenants. The shift has been lower down the price chain to “affordable
housing” in the P500-P800k bracket, whilst the top end has suffered.
For Time Projects, somehow, we always manage to buck the trend
as we had a fantastic year once again. As mentioned above, we
completed the Bank Gaborone and Capital Bank buildings, Botswana’s
first Green Star rated properties, which is an amazing achievement
indicating our commitment to responsible and sustainable development
in our world. The Design Quarter at Setlhoa is a magnificent, modern
new concept brought to Gaborone which should prove a hit as it
complements the other surrounding and nearby retail outlets.
In Zambia, we also had a great year with the completion of Chirundu
Mall, valued at US$7m, in April and Munali Mall in Lusaka, valued
at US$13m, in August. Built to a classy, yet functional standard, both
anchored by Shoprite, they should prove great assets for PrimeTime’s
portfolio. We are very proud of these accomplishments and compliment
Heinrich and the team in Zambia.
ABOUT TIME, the quarterly
newsletter of Time Projects
Editor: Brett Marlin
Under Time Projects’ stewardship, PrimeTime’s portfolio grew again this
year from P1.2b to over P1.42b, producing an increase in operating
income of 13% from P110m to P125m and an increase of 46% in
trading profit from P37m to P53.8m, a stellar performance.
Looking ahead to 2019
We have started the development of Setlhoa Office Park. These nine
office buildings valued at P65m are being sold as sectional title and are
scheduled for completion in September 2019. Construction of Pinnacle
Park for PrimeTime will commence early in the new year. The first phase,
a P50m commercial park for rental, should be ready for occupation in
early 2020.
It doesn’t stop there! On the back of the successful Design Quarter
driven by demand both for trading space and investment, we have
pretty much sold out two further showroom developments: Setlhoa Retail
Park and Setlhoa Showrooms. Watch this space as another significant
development in the area will soon be announced.
In Phakalane Industrial, we shall shortly be commencing construction of
a new distribution centre for SPAR, Barloworld Heavy Equipment’s new
workshops and a similar facility for Bell Equipment.
In Zambia, we have finally overcome numerous hurdles and are just
about to start construction on Kabwata Mall in Lusaka, a small 3 000m²
convenience centre serving a high density community. There are a
number of other projects in Zambia on the table which could well come
to fruition in the new year. We are very optimistic for that market.
And so, the Christmas holidays or the “Builders Break” as we call it,
begins. Yes indeed, we deserve the Builders Break, as we’ve had a hell
of a good year and deserve the holiday to come back refreshed for the
massive challenges ahead in 2019. We thank all our clients, associates
and supporters for their confidence in us and our teams and we look
forward to another successful year of working together as we continue to
build Botswana and Zambia.
All the best.
Managing editor: Faye-Marie Cloete
Email: [email protected]
Cell: +267 7137 6232
Contributors: Sandy Kelly, Brett Marlin,
Turnie Morolong, Heinrich Malan and
Michael Hughes
Tel: +267 395 6080 | Fax: +267 390 0160 | Email: [email protected] | Website: www.time.co.bw
ABOUT TIME is published on behalf of Time Projects by Nova Communications (Pty) Ltd.
The opinions expressed in this newsletter are those of the authors and people interviewed and do not necessarily reflect the views of the editor, publisher or Time Projects. While all
precautions have been taken to ensure accuracy of information, the editors and publisher cannot accept responsibility for any inaccuracies which may inadvertently have occurred.
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ISSUE 36 - DECEMBER 2018