PrimeTime in P200m expansion in Zambia

SHARE   |   Monday, 15 January 2018   |   By Kabelo Adamson
PrimeTime in P200m expansion in Zambia

The construction of two retail centres in Zambia is expected to add a further $20 million (P200 million) in value to PrimeTime Holdings Limited portfolio in that country. The company’s Managing Director, Sandy Kelly and group chairperson Patronella Matumo disclosed this in a statement contained in the latest annual report. Once complete, the two centres – one at in Munali, a central suburb of Lusaka and Chirundu – are expected to take the company’s total country investment to over $50 million; close to 40 percent of the group’s assets. The company says in Botswana it has started construction on its smaller Setlhoa plot with a retail park concept for the home décor and design sector – the first of its kind in Botswana. “Two smaller extensions to existing centres were also underway with a one shop extension at Sebele Centre and a fast food drive-through at Pilane Crossing where KFC will be opening in early 2018,” said the company. The expansion has been possible thanks to the continued support of its investors and financiers. In June 2017, PrimeTime completed its Rights Issue which the company says it was well received in the market and raised just over P200 million.
In terms of the debt finance, PrimeTime issued a further P120 million in long-term bonds earlier in the year and utilised P30 million of the monies raised from the rights issue to settle some of its smaller amortising commercial bank debt. “The balance of the money raised under the rights issue is being used to fund the new developments,” the group said. PrimeTime says the results of its geographical diversification into Zambia are now being seen and operations in Zambia are said to have contributed 20 percent of the rental income for the current year and expected to increase significantly over the next few years. In Botswana, PrimeTime is looking forward for Pilane Crossing becoming the successful retail centre it was originally envisaged to be. The group says it is well positioned to take advantage of opportunities that may present themselves in the coming year and the management team is constantly searching for suitable investments which will enable it to continue to grow the company and diversify into new markets.