LLR courts real estate markets in Africa

Keikantse Lesemela
Friday, 20 November 2015
LLR courts real estate markets in Africa

Letlole La Rona (LLR), an investment company in the property sectors is seeking investment opportunities in East and Western African countries to grow their portfolio. In its latest annual report, Letlole La Rona Chief Executive, Paul More said that property and other investment opportunities in the continent are attracting a lot of interest from both Eastern and Western countries.

“The new vision of LLR is to be the premier real estate company in Botswana and selected markets in Africa. As LLR considers the option of offshore investments, it is important to consider what real estate markets in Africa have to offer,” said More.

He said that research conducted to date, has shown that the supply of operational space in some countries is outstripped by demand while in other countries the quality of available space does not match the appetite of investors. “For the next financial year, LLR will gather market intelligence on markets demonstrating potential for growth in property investment and will piggyback on strategic partners with an established foothold in these markets,” said More.

The company’s net assets grew by nine percent and its property portfolio value grew by eight percent in the financial year ended 30 June 2015. Its profit after fair value adjustment and before tax amounted to P97.3 million compared to P92.6 million in the previous year.He said the company will consider investing in new acquisitions and developments in order to diversify and grow its portfolio and as part of its strategic intent, targeting increased market capitalisation. LLR operates in the industrial, leisure, retail and commercial office property space, with most of the property investment space based in industrial property followed by leisure space.

The hotel space continues to be let to one stable operator, with leases that accommodate annual compound escalation of rental. This has contributed to contractual revenue growing at an inflation-beating rate of close to 10 percent relative to prior year. LLR property portfolio comprises 47 percent industrial, 38 percent leisure and 15 percent commercial. Its major properties include Cresta President Hotel, Cresta Bosele Hotels and Moedi House. More also revealed that LLR is now considering the acquisition of residential property situated in prime locations with potential for income and capital growth.

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