RDC Properties shelves Cape Town development

In an effort to look for development opportunities to grow its portfolio, RDC Properties has shelved the proposed development of the business hotel in Cape Town.

In the project the group was looking to acquire 45 percent stake in a South African company, Braccobaldo Propriety Limited (BR1) through a R18.2 million loan. BRI was supposed to build the four-star hotel.

Presenting the Group results on Thursday, RDC Properties Managing Director, Giudo Giachetti said the proposed development of the business hotel had to be set aside because some issues arose with the subdivision of the property which was a condition precedent.

“Management is very much focusing on the regional diversification,” he said, adding that other developments were however under scrutiny. He said the refurbishment and rebranding of the Masa Square hotel has been completed along with the addition of the now fully operational 30 luxurious Masa executive suites.

In Namibia the group has signed a Memorandum of Understanding with partners for its proposed retail developments. “At this stage two pieces of land have been identified and reserved for development. The preliminary designs, market research and feasibilities are underway for many centres around the country,” said Giachetti.

Currently RDC Properties is building 45 residential apartments (a mix of one-bedroom, two-bedroom and lofts) in Gaborone. However, in the half year ended 30 June 2016, the group has recorded 42 percent increase in profits to P 26.2 million aided by the interest received on proceeds of the rights issue.

Profit from operations increased by 8 percent to P29.7 million with rental income up by 5 percent to P41.7 million, attributable mainly to the “exceptional performance” of Chobe Marina lodge.