Botswana’s upcoming asset and property company, Prime Time Property Holdings, has completed a multimillion-acquisition deal with a Zambian Property company, BG Business has established.
The acquisition in Zambia is only awaiting some regulatory and financial approvals. The investment, which was agreed a year ago, was held up by the change in the structure of conducting business in Zambia by the issuance of a statutory instrument, SI 33 that prohibits transactions being done in foreign currency.
However, the company revealed recently that the transaction would now be an all Zambian Kwacha based purchase and lease. Prime Time Managing Director Sandy Kelly declined to reveal the property or the Zambian property company which they would be acquiring the property from.
“All I can reveal is we will reveal details soon,” Kelly said. He also could not reveal the value of the property, but said that Prime Time was ready to add P150 million to its portfolio in the next six months.
Currently, Prime Time’s total assets are valued at P521 million. Kelly said they chose investing in Zambia in view of the country’s political stability and growing economy and population. Zambia has a population of over 14 million, with its GDP currently at $22 billion.
“We saw an opportunity of business expansion there, and the same applies to the sub-Saharan Africa,” he said. The acquisition comes at a time when the Botswana Stock Exchange listed property junior has announced its pan-African plans. Kelly said they are in the process of expanding their footprint to countries like Namibia, Mozambique, Uganda, Tanzania and Kenya.
With the aim of financing their expansion drive, Kelly mentioned that they are currently seeking some funds for the drive.“I can confirm that we have managed to attract the attention of Botswana’s top banks which are currently highly interested in funding us,” he said, adding that Prime Time seeks up to P1 billion that would be used to further their operations.
“Already, we have managed to secure at least P500 million,” he said. Prime Time’s biggest prospect and opportunity for the year is the development of Prime Plaza phases 2 and 3. For the year ended 31 August 2012, the company recorded a P6 million increase in its profit after tax, to stand at P66 million from the P60 million of the prior same period.