RDC Property Group (RDC), a leading Botswana-based property investment, management and development company, has successfully executed its portfolio optimisation strategy through the strategic disposal of non-core assets. This highlights RDC’s commitment to maximising shareholder value through proactive asset management.
Portfolio Optimisation Boosts Financial Strength
Following a thorough analysis and modelling process, RDC identified and concluded sale agreements for a total of 12 properties across its portfolio in the year ended December 31, 2023. Proceeds from the sales have been strategically reallocated to reduce the group’s loan to value (LTV) ratio and allows the group to focus on property improvement programmes as well as strategic acquisitions.
A prime example of this is the redevelopment of Westlake Lifestyle Centre in Cape Town, South Africa which has secured two anchor tenants, Checkers and Clicks, with strong long-term leases.
Furthermore, in 2023, the Group was able to acquire the David Livingstone Safari Lodge Hotel and Spa in Zambia – fostering its growth in geographics and the hospitality industry.
Preserving Value Through Property Growth
Notwithstanding the above disposals, RDC’s portfolio experienced a positive uplift of P107 million through the revaluation of investment properties. This demonstrates the Group’s dedication to value protection, a core element of its successful asset management strategy. As per company policy of an independent valuation of every property within a 3 year cycle, almost two thirds of the portfolio underwent external valuation as at Dec ‘23, further emphasizing RDC’s commitment to transparency and accurate financial reporting.
Financial Strength through Diversification
RDC has a well-balanced sectoral and geographically diverse portfolio. The company has recently entered a joint venture for solar rooftop systems in Croatia, and has concluded 13 Power Purchase Agreements across the SA portfolio, which will provide clean power to the properties and a discount to the grid rate. This expansion into renewable energy demonstrates the group’s commitment to both sustainability and shareholder growth.
Looking Ahead
RDC’s strategic disposal programme and portfolio growth strategy exemplifies their proactive approach to innovative portfolio management. By optimising their asset base, RDC is well-positioned for continued growth and long-term value creation for their shareholders.