The Projects | Retail property development
The long awaited Francistown version of railpark mall will finally take off. Landlord, Botswana Railways has roped in top property developer Time Projects to deliver the multi million pula mixed use shopping arcade, the likes of which “turopo” residents have never seen before.
Last Thursday Botswana Railways Properties(BRP), a wholly owned subsidiary of Botswana Railways (BR) signed a Memorandum of Understanding (MoU) with Time Projects Botswana (Pty) Ltd to deliver the project, estimated to cost over P300 million.
The rail state owned enterprise sits on chunk of land along its over 500 kilometer Lobatse-Francistown railway line.
In the country’s second city the land earmarked to house Ghetto ‘ s Rail park measures 11.6 hectares and is currently unused.
At the signing of subscription and shareholder agreement between the two parties, Acting Chief Executive Officer of Botswana Railways Chelesile Malele revealed that a Special Purpose Vehicle Company called under the nomenclature Rail Diamond has been opened under the tripartite shareholding between BR, BR Properties and Time Projects (Pty) Ltd.
A similar arrangement was set up for Gaborone Rail Park Mall JTTM Properties, a special purpose vehicle company was set up between BR, BR Properties and project partners.
Deliberating on the project cost BR Properties Managing Director Utlwanang Golebanye said preliminary cost estimates have not been confirmed pending finalisation and approval of the design drawings.
Time Projects Pty Ltd was picked as the preferred bidder following a rigorous process of negotiations which was successfully concluded.
BR will lease the development land to the Rail Diamond on a long-term lease of 40 years, the value of which will be held by the SPV as the BR’s equity contribution.
Time Project Botswana will contribute equity in finances, equivalent to the value of BR’s land and Botswana Railways Property as the facilitator of the project from inception shall be allotted shares in consideration of the project facilitation services rendered.
During construction the project is expected to generate over 300 jobs and another 300 after during full tenancy operation levels.
