RDC Properties, the leading property company this week disclosed that it will increase its investment portfolio as the group continues to record increased profits in a challenging market. Speaking at the company’s financial results to December 2016, Executive Chairman, Guido Giachetti said the environment is ripe for them to start rolling their projects in the medium to long term. “We have not started it yet but we have a strong focus in Botswana market. We are looking at increasing our portfolio as a whole in Botswana because our investment is well positioned in the country,” he said.
He said they are currently working on the residential market in Botswana and looking for acquisitions in the region. “To expand our portfolio we are working on developing residential houses in Botswana and in the region we are looking for acquisitions for further developments,” said Giachetti.
RDC completed the refurbishment and rebranding of the Masa Square hotel in Gaborone last year and is now fully operational with 30 luxurious Masa executive suites. The BSE listed company is building 45 residential apartments (a mix of one-bedroom, two-bedroom and lofts) in Gaborone which will be completed in the first quarter next year. “Gaborone remains the prime location for the group’s portfolio with strategy of regional diversification already in progress,” said Giachetti.
Presenting the group’s year end results on Tuesday, Giachetti said the completion of Masa suites as well as Masa Square Hotel refurbishment has added positively to the group. However, the group indicates that the Gaborone hospitality sector is facing increased development activities which might lead to risk of over supply in future.
The group recorded 24 percent increase in profits to P124.5 million for the year ended December 2016. Giachetti said the investment and property portfolio grew by 12 percent to P1.2 billion with the largest contributor being the Chobe Marina Lodge, which was independently valued this year.
“Contractual lease rental revenue improved by six percent, excluding the effects of the straight line rental adjustments. This growth is largely due to the performance of Chobe Marina Lodge,” said Giachetti.
In pursuit of their regional expansion, they have now secured sites in Namibia for the development of convenience shopping centres in Katima Mulilo and Tsumeb villages. Giachetti said the land allocation process is on-going in three other towns in Namibia and construction is expected to start within the next six months.