- Says sale in line with its strategy of asset recycling to optimise returns
- Transaction awaits approval of Competition and Consumer Authority
Letlole La Rona (LLR) has notified its shareholders that it is currently in the process of selling Lot 50380, Moedi House, which is situated in Gaborone as part of its strategy of asset recycling.
According to Letlole, it is in the process of concluding a sale agreement in respect of Moedi House with Shining Sun Investments Proprietary Limited, a company registered in Botswana that carries on the business of property investment.
“The sale agreement is subject to fulfilment of certain conditions, the primary of which will be the approval of the transaction by the Competition and Consumer Authority,” the company says in a statement issued on the BSE. LLR has stated that the purchase consideration for Moedi House, which is sold through a private treaty and as a going concern, is P53 million excluding VAT, which the company says is in line with the valuation of the asset which will be settled in full upon transfer of the property.
The real estate management company further says the sale of the asset is in line with its strategy of asset recycling with the aim of optimising the portfolio’s total return, thereby further unlocking superior returns for its stakeholders. In a cautionary announcement also issued on the BSE website prior to this, LLR had advised its unitholders of potential transactions that involved the sale of three of its properties. However, the announcement has since been withdrawn.
In it, the company had stated that it had engaged prospective buyers who had expressed interest in the respective properties with a material impact expected on its securities if negotiations were successfully concluded. Letlole La Rona is a real estate development and management company that owns and operates commercial and industrial properties in Botswana, which includes hotels, warehouses and factories. The focus of the company property portfolio is on industrial properties.