PrimeTime Property Holdings is working with government to secure licences for South African shops at the new Pilane Mall, managing director, Alexander Kelly has revealed.
Kelly said their long-term view remains positive due to strong local demand. “The need for high quality dedicated retail facility in the Pilane/Mochudi area has been known of for many years. We will continue to work hard with investors and the government,” he said.The 8934 sqm mall was opened in September with 30 percent of South African National retailers denied trading licences by the government. Current tenants include, Choppies, Barclays, First National Bank, Liquorama, OK Furniture, Knock Out, Cash Build, FSG and Café Pie Time. Kelly said they are expecting to see the international shops opening at the mall in the next coming months as the government is currently engaging with the retailers.
“The minister of Investment Trade and Industry has reported his engagement with the retailers and we are hopeful we will see international retail brands opening at Pilane Crossing mall in the coming months,” he said.Kelly said around one third of the space leased at the mall is yet to be occupied as the government and international retailers search for a solution to the granting of licenses in the citizen reserved business spaces. “This has created a challenging environment for the local retailers who have opened at the centre without the draw of the major chains who were expected to be operational, even the anchor tenant is struggling,” he said.
In its year ended August 2016, PrimeTime has recorded 25 percent increase in profits to P81.5 million. Its total portfolio value stood at P837 million by August 2016. Kelly said they are continuing their strategy to grow and diversify their asset base. In June, the company listed a bond to the value of P105 million.
“This has enabled us to complete the Pilane Crossing development and to look for the next acquisitions,” he said adding that these will include the development of industrial units on land already secured at Setlhoa and the retail investment in Zambia. Prime Time has recently acquired 7500 sqm retail space in Lusaka at the cost of 17.1 million US Dollar with a 9.25 percent net rental guarantee.
“Our long-expressed intention of expanding our footprint in Zambia is now taking shape with significant investment planned over the next few years,” he said.Kelly also stated that they are seeking further investment into the industrial property sector and have secured two plots at Setlhoa properties and are now in planning stages.