CAPITAL PROPERTIES, TANZANIA

The tenancy history of the property has been very stable, with few changes to the rent roll over a number of years.

CAPITAL PROPERTIES, TANZANIA

Through Capital Properties Limited (“CPL”), a company domiciled in Tanzania, SACREIL owns three office towers, and an associated car park, located in Dar es Salaam, Tanzania. The total GLA of the three towers amounts to approximately 20,962m² and is multi-tenanted.

FINANCIAL DETAIL

The summarised financial information relating to CPL is as follows:

• SACREIL effectively owns 100% of Capital Properties Limited through a wholly-owned subsidiary, Amani Place Properties Limited (“APPL”), a company domiciled in Mauritius.
• The properties owned by CPL were independently valued at USD33,8 million as at 31 December 2021.

TENANCY OVERVIEW

The tenancy history of the property has been very stable, with few changes to the rent roll over a number of years. The asset has achieved above the market occupancy rates and market rentals, amidst the deterioration in these caused by the COVID-19 pandemic. The occupancy rate was 86%. The largest tenants are ABSA Bank and Commercial Bank of Africa.

ASSET OPTIMISATION

The three office towers are known as Amani Place, FNB House and Barclays House with Amani Place being the largest tower with a lettable area of 11,726m².  Amani Place is the newest building in the portfolio having been built approximately eight years ago and, as a result, still has specifications which are up to date.

Barclays House is a comparatively older building but underwent a significant renovation in 2007 and its specification remains acceptable at this stage.

FNB House is the oldest asset in the portfolio and therefore underwent a comprehensive refurbishment which was completed in 2017. The refurbishment was intended to maintain the value of the asset and enhance the tenant experience and was funded from internal resources.

The growth rate had declined due to the adverse economic impact of the COVID-19 pandemic crisis and the negative outlook for the Dar-es-Salaam office market. The key factors affecting the valuation of the property is an oversupply of offices in Dar-es-Salaam (since the government’s offices were re-located to Dodoma in 2018) and an increase in opportunities for commercial spaces and this pressurized the market rental rates.

PROPERTY MANAGEMENT

The property management function is performed by Knight Frank Tanzania. Key responsibilities include day-to-day property management, tenancy management and financial accounting.

_{As at 31 December 2021}