RDC Properties on expansion drive

SHARE   |   Monday, 04 April 2016   |   By Kabelo Adamson
Masa Square, CBD Masa Square, CBD

RDC Properties, a property management and property development company, says the successful raising of P232.2 million from the rights issue concluded in November has placed it in a strong position to expand into the region. RDC intends to expand into Mozambique, Namibia and Mozambique. Further to that, the company says agreement has been signed for the acquisition of a 45% stake in Braccobaldo 1 (Proprietary) Limited, subject to regulatory approval. The company said in a statement accompanying the financial results for the year ended 31 December 2015 that the South African company (Braccobaldo 1) will develop a large hotel in Queen Victoria Street in the heart of the Cape Town CBD.

All these projects are expected to further boost RDC Properties’ earnings which during the period under review reached P86.9 million - an 11 percent increase from the year before. Profit before tax went up by 9 percent to reach P126.3 million. RDC investment and property portfolio grew by 16 percent to P1.1 billion with large contribution coming from Masa Centre and Chobe Marina Lodge as well as the acquisition of the RDC Flats, the deal which was completed in November 2015. The company’s portfolio is mainly in retail and commercial property. Masa Centre vacancy is said to have dropped to 1 percent of the whole lettable area which is down from 10 percent. The company has announced that Masa Suites are almost complete and will be marketed by Masa Square Hotel with first guests to be welcomed sometime this month.

Masa Square Hotel, which is located in the prime location of the new Central Business District (CBD), is said to be the most sought after business hotel in the country while Chobe Marina Lodge, another property belonging to RDC, is said to be doing well as well. “This is due to the management team of the hotel and to the refurbishment carried out in 2014. In the previous year the refurbishment had started to bear fruit but the full effect is being seen in the current year,” RDC said in a statement. Equally, the company says it is satisfied by the demand for the newly completed Gaborone West Warehouses. RDC has declared a final dividend of 0.3640 Thebe per share and interest of 0.2115 Thebe per debenture during the current financial year. The company, which listed on the Botswana Stock Exchange (BSE) in 1996, has a market capitalisation of P865.9 million. Its shares were trading at 250 Thebe per share on Friday.