Letlole La Rona’s investments bear fruit
Botswana Stock Exchange-listed Letlole La Rona Limited (LLR) says the performance of its portfolio was solid during the last part of last year buoyed by the acquisition of additional stake in a key shopping mall in the capital.
According to the Letlole’s interim results for half year ended December 31, 2023, during the period it acquired an additional 25% shareholding in JTTM Properties (Proprietary) Limited (JTTM), the holding company of Railpark Mall.
The deal resulted in JTTM becoming a subsidiary of the company at a shareholding of 57.79% and in the process uplifting the value of Letlole’s investment portfolio from the prior year’s P1.4 billion to close at P1.6 billion as at December 31, 2023.
As a result of this, at group level, the investment portfolio value increased from P1.5 billion to P2.0 billion.
The company’s CEO, Kamogelo Mowaneng said they had been enjoying strong returns from strategic investments in their property investment portfolio that range from retail space to industrial space investments.
“During the period under review, our portfolio continued to perform strongly, with improvements across all key metrics as a result of our ongoing focus on portfolio growth and optimisation,” she said.
“We are pleased to report a successful first half of the 2024 financial year, where we managed to not only grow the portfolio through strategic acquisitions and value accretive refurbishments but also recycled capital through the disposal of Moedi House as well as the ongoing sale of section titles at Red Square Apartments.
At the group level, the CEO further revealed they have made acquisitions that were expected to deliver strong returns to shareholders.
“The acquisition of an additional 25% stake in JTTM Properties significantly uplifted the value of our investment portfolio to P2.0 billion at a Group level.
“Our investment portfolio was further differentiated by the quality of our tenant base, as demonstrated by above market occupancy levels of 99.15% and strong collections of above 100% for the period.”
The listed group’s ‘Go to Africa’ strategy suffered a knock early last year when a shareholder tussle resulted in the exit of Grit Real Estate, the pan-African group that was leading LLR’s push into the continent.
From being the second largest equity holder with a 30% stake, Grit gradually shed its holdings in LLR to zero, citing a change in its strategy. Prior to its exit, Grit helped LLR finalize a $15 million equity deal in Kenya, the local property group’s first expansion into the continent.
The acquisition of an additional 25% stake in JTTM Properties significantly uplifted the value of our investment portfolio to P2.0 billion at a Group level