PrimeTime Property Holdings Limited has announced the proposed sale of four investment properties in Gaborone to the Botswana Public Officers Pension Fund (BPOPF), acting through its appointed property asset manager, Seventy5 Degrees (Pty) Ltd.
The transaction is valued at P98.5 million, excluding taxes, payable in cash. The properties are commercial, office and retail assets located at Lot 29, Lot 203, Lot 67979 and Lot 74759 in Gaborone.
The proposed sale is subject to the fulfilment of conditions precedent, including regulatory approvals and the required unitholder approvals.
PrimeTime Chairman, Paul Masie, said the transaction forms part of the company’s capital recycling programme, with the objective of strengthening the balance sheet and positioning the Fund for future growth.
“This sale fits squarely within our capital recycling programme. It allows us to convert selected assets into cash, reduce debt and create the financial headroom PrimeTime needs to position the Fund for future growth,” he said.
The proceeds are expected to be used first to settle approximately P62 million in secured debt associated with the properties. The balance of the net proceeds will be used mainly for further balance sheet deleveraging, with a portion set aside for near term capital expenditure requirements.
Masie said the Board had focused on the long-term interests of PrimeTime and its unitholders in considering the transaction.
“The Board’s responsibility is to make capital decisions that leave the company stronger. The proposed disposal of these four properties gives PrimeTime a clear route to lower debt, reduce financial pressure and retain capacity for future growth,” he noted.
PrimeTime said the sale follows a structured and competitive process. The company approached selected investors active in Botswana’s commercial property market and appointed a third-party agent to seek additional offers. After reviewing multiple proposals, the Board selected the offer submitted by Seventy5 Degrees on behalf of BPOPF, considering pricing, transaction certainty and execution risk.
“We tested the market and weighed up the offers carefully. The proposal from Seventy5 Degrees on behalf of BPOPF met the Board’s requirements on value and deliverability, and we believe it is the right transaction to place before unitholders, ”Masie said.
The aggregate consideration is aligned with the most recent independently determined open market values of the properties.
BPOPF holds approximately 32.43 percent of PrimeTime’s issued linked units. The proposed sale is therefore classified as a related party transaction under Chapter 7 of the Botswana Stock Exchange Equity Listings Requirements. PrimeTime said the transaction will follow the required regulatory and governance approval process.
A circular to unitholders is being prepared and will set out the full details of the proposed sale. It will include the nature of the related party relationship, an independent expert’s opinion, the recommendation of the Audit and Risk Committee, Board approval and details of any required unitholder meeting.
Masie said transparency would be central to the process.
“BPOPF is a significant unitholder in PrimeTime, which makes the approval process especially important. The Board is committed to giving unitholders the information they need to consider the transaction properly and to ensuring that the required independent review process is followed,”he revealed.
PrimeTime has also started engagements with certain major unitholders who are not related parties to understand their indicative support for the transaction.
The company said further announcements will be made as appropriate. Unitholders have been advised to continue exercising caution when dealing in PrimeTime linked units until a further announcement is made regarding the status or finalisation of the transaction.
“PrimeTime has quality assets and a clear responsibility to manage capital carefully. This capital recycling programme is designed to release capital from selected properties, reduce secured debt and give the company a stronger base from which to manage the next phase of its portfolio,” said Masie.
