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New mall brave attempt to breathe life into Lobatse

Once one of the most prominent and respectable metropolitan towns in the colonial era, with architectural designs to ravel visitors, Lobatse was the hub of growth and development. Colonizers invested in it, built it and became a vocal point of trade.  

Such was the case of Lobatse; a legendary 123 year old town which was nearly made this country’s capital city, failed to hang onto the economic value of the 66 year old beef abattoir that was built by Botswana’s colonial master, subsequently becoming a ghost town. One of the reasons why Lobatse died is because the beef abattoir, now known as Botswana Meat Commission (BMC), is not doing well financially and its workers left the town more than a decade ago leaving the economic status of the town moribund.

But someone has hope that the town of Lobatse will somehow revive and become what the colonialists had in mind more than a century ago. A daring and brave property investment company; Prime Time is building a P116 million mall in Lobatse at Lot 14076, situated at the town’s main bus terminal.  The shopping mall is to be known as Lobatse Junction mall.

According to Botswana Stock Exchange listed Prime Time, it has found a niche in a town which has never seen new shopping centre buildings for 15 years. Lobatse holds a small population of close to 30 000, but Prime Time is hopeful that, “a steady stream of traffic passing through it as a border town (border to economic giant and biggest trading partner to Botswana, South Africa) and its position on the A1 as strategic.

“Current retail provision is concentrated in a few small malls, stand-alone units and traditional high street retail. Existing offerings are therefore generally dated with tenants holding onto premises due to a lack of other options in the market. New entrants to the Lobatse market are also frustrated by a lack of available premises,” said Prime Time justifying the idea of a mall in Lobatse and why it should be in high demand.

But this was not the first time the company invested in Lobatse and its first investment never lived up to expectations as it seemed to be swallowed or overshadowed by the ghost town. According to Prime Time, the Hillside Mall property is currently subject to a shortening ground lease and will diminish in value as the lease runs down. However, according to Prime Time, Lobatse Junction mall acquisition will protect the company’s position as a major player in the retail market in Lobatse.

According to independent valuer Benedict Kgosilentswe who valued the mall property on 13 September 2019, the 4.4204 Ha land is going to be developed with a shopping complex measuring approximately 8,805 m2. Prime Time said the property measures 4.42 hectares and is held on a 30-year lease from Lobatse Town Council with an option to renew for a period of a further 30 years. According to Kgosilentswe, the land use specifies “Mixed Use (Commercial and Civic and Community)”.

“Spar will be the anchor tenant to occupy about 1,900m2, the promoter/developer will also sign up a mixture of National and South African National stores. At the time of our survey, construction of the mall had not yet commenced,” said Kgosilentswe, a Chartered Surveyor with more than 20 years’ experience undertaking valuations of fixed property assets, commercial property valuation, agency and consultancy.

Tenants expected to join major tenant Spar are; Botswana Life, BBS, Ackermans, PEP, Jet, Clicks and Bradlows. “The proposed shopping complex will comprise a parade of 30 retail units, 10 kiosks, 15 small informal traders’ kiosks, 20 larger informal traders’ kiosks and two ATM kiosks to have 263 surface car parking bays, 14 bicycle parking bays,” said Kgosilentswe.

“I have inspected signed leases and expressions of interest and can confirm tenant demand for leasing space at the property has been exceptionally strong. The majority of interest from tenants is from regional and national players which will provide a secure income stream,” said Kgosilentswe. Kgosilentswe said Lobatse lacks high quality retail provision which will be addressed by Lobatse Junction. He said the mall is excellently located and will benefit from the busy traffic created by the bus and railway stations.

The valuer of Lobatse Junction mall also said Time Projects is providing Prime Time with a rental guarantee of 8 percent which will protect the company’s return on investment during the centre’s first year of operation, which can often be turbulent as tenants bed down.
Prime Time Linked Unitholders, who holds more than 5 percent of the issued Linked Units are Botswana Public Officers Pension Fund (BPOPF) with 77,621,910 units which is 31.72 percent, Linwood Services with 16. 36 percent, Tati Company with 22, 873, 86 which is 9.35 percent and Debswana Pension Fund with 7.99 percent.

Primetime Unitholders to be paid 8.32 thebe on March

For the year ended 31 August 2019 Primetime had final interest distribution comprising of interest of 2.00 thebe per linked unit and it has been declared payable. The 2.00 thebe declared last year will be added into an interim interest distribution comprising interest of 6.32 thebe per linked unit in respect of the year ended 31 August 2020 (covering the 4-month period to 31 December 2019) which has been declared payable. Next month on the 23th unitholders will be paid a total of 8.32 thebe per linked unit (gross).

Linked unitholders or investors have been told that the company has started road shows to institutional investors regarding a fund raising through a rights issue and issuance of further debt instruments under the Company’s existing domestic medium term bond programme. According to Primetime’s latest cautionary announcement, the company is raising funds “to support its continuing growth strategy.”

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China’s GDP expands 3% in 2022 despite various pressures

2nd February 2023
China’s Gross Domestic Product (GDP) expanded by 3% year-on-year to 121.02 trillion yuan ($17.93 trillion) in 2022 despite being mired in various growth pressures, according to data from the National Bureau Statistics.

The annual growth rate beat a median economist forecast of 2.8% as polled by Reuters. The country’s fourth-quarter GDP growth of 2.9% also surpassed expectations for a 1.8% increase.

In 2022, the Chinese economy encountered more difficulties and challenges than was expected amid a complex domestic and international situation. However, NBS said economic growth stabilized after various measures were taken to shore up growth.

Industrial output rose 3.6% in 2022 over the previous year, while retail sales slightly shrank by 0.2% data show that fixed-asset investment increased 5.1% over 2021, with a 9.1% hike in manufacturing investment but a 10% fall in property investment.

China created 12.06 million new jobs in urban regions throughout the year, surpassing its annual target of 11 million, and officials have stressed the importance of continuing an employment-first policy in 2023.

Meanwhile, China tourism market is a step closer to robust recovery. Tourism operators are in high spirits because the market saw a good chance of a robust recovery during the Spring Festival holiday amid relaxed COVID-19 travel policies.

On January 27, the last day of the seven-day break, the Ministry of Culture and Tourism published an encouraging performance report of the tourism market. It said that domestic destinations and attractions received 308 million visits, up 23.1% year-on-year. The number is roughly 88.6% of that in 2019, they year before the pandemic hit.

According to the report, tourism-related revenue generated during the seven-day period was about 375.8 billion yuan ($55.41 billion), a year-on-year rise of 30%. The revenue was about 73% of that in 2019, the Ministry said.

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Jewellery manufacturing plant to create over 100 jobs

30th January 2023

The state of the art jewellery manufacturing plant that has been set up by international diamond and cutting company, KGK Diamonds Botswana will create over 100 jobs, of which 89 percent will be localized.

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Investors inject capital into Tsodilo Resources Company

25th January 2023

Local diamond and metal exploration company Tsodilo Resources Limited has negotiated a non-brokered private placement of 2,200, 914 units of the company at a price per unit of 0.20 US Dollars, which will provide gross proceeds to the company in the amount of C$440, 188. 20.

According to a statement from the group, proceeds from the private placement will be used for the betterment of the Xaudum iron formation project in Botswana and general corporate purposes.

The statement says every unit of the company will consist of a common share in the capital of the company and one Common Share purchase warrant of the company.

Each warrant will enable a holder to make a single purchase for the period of 24 months at an amount of $0.20. As per regularity requirements, the group indicates that the common shares and warrants will be subject to a four month plus a day hold period from date of closure.

Tsodilo is exempt from the formal valuation and minority shareholder approval requirements. This is for the reason that the fair market value of the private placement, insofar as it involves the director, is not more than 25% of the company’s market capitalization.

Tsodilo Resources Limited is an international diamond and metals exploration company engaged in the search for economic diamond and metal deposits at its Bosoto Limited and Gcwihaba Resources projects in Botswana.  The company has a 100% stake in Bosoto which holds the BK16 kimberlite project in the Orapa Kimberlite Field (OKF) in Botswana.

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