Listed property developer RDC Properties has shelved its plans to develop a business hotel in the Central Business District (CBD) in Cape Town, South Africa. Group Executive chairman, Guido Giachetti, told stakeholders at a presentation of RDC half year results on Thursday that they hit a snag with regards to the development as some issues arose with the subdivision of the property which was a pre-condition. Giachetti said other developments elsewhere in the region include in Mozambique where the company has signed a Memorandum of Understanding (MoU) with a number of partners for retail developments at two sites. Giachetti explained that the market for property in Mozambique is still very high and as such they anticipate stiff competition in that market. RDC, which has set its focus on regional expansion, is also undertaking other projects in Namibia and has so far entered into agreements with some partners for retail developments in the northern side of that country. Locally, the group whose flagship development is the Masa Centre situated at the Gaborone CBD, is expanding its residential flats by adding new three blocks that will comprise 45 flats with the total cost of the project estimated just below P40 million.
Results: Rental income jump to P41.7m
Meanwhile, for the half year ended 30 June 2016, RDC has seen its rental income go up by 5 percent to P41.7 million which is said to have been aided by Chobe Marina Lodge which has reportedly performed exceptionally well, recording an increase in rental income of 33.9 percent over the prior year. The lodge’s performance is understood to be aided by the growth in the tourism industry together with sound management of the property. The office space comes second to hospitality sector in terms of contribution to rental income at 35 percent followed retail at 21 percent. Profit before tax for the period stands at P26.2 million after an increase of 42 percent and investment & property portfolio grew by 17 percent and now at P1, 124 million. RDC has refurbished and rebranded its flagship property which is now known as Masa Square Hotel and added 30 new luxurious suites which are operated by the Masa Square Hotel and so far the response from the market is said to be impressive. RDC, whose market capitalisation stands at P914, 049, 194, has announced that its Gaborone West Warehouse is now complete and currently at 71 percent occupation. The company directors have declared an interim dividend of 0.065 Thebe per ordinary share and interest notice of 3.273.