By Phesheya Mkhonta
The Swaziland Property Investments Limited (SWAPROP) has revealed that they have received regulatory approval for the acquisition of Matata Properties.
Matata Properties owns major retail properties in Matata City, while SWAPROP is a property investment holding company listed on the Eswatini Stock Exchange (ESE).
The holding company derives its income from interest on loans with its subsidiary companies and interest on investment accounts. Wholly owned subsidiaries linked to SWAPROP include Plaza Park Limited, the Hub Limited, Nhlangano Mall Properties, and Elwandle Properties Limited.
SWAPROP believes that the acquisition will add to shareholder value in the company by enhancing earnings and the resultant increase in the fair value of the assets.
Moreover, SWAPROP has disclosed that they have received an offer with respect to the company that owns the industrial properties in Matsapha which is under consideration.
The company revealed the acquisition in its Interim Results for the six-month period that ended on 31 December 2022. The entity’s market capitalization currently stands at E183.7 million.
“Revenue increased by 1.6% compared to the corresponding six-month period. Operational expenses decreased by 0.6%, due to increases in costs, which was offset by savings on certain expenses.”
In terms of interim distribution, the company states that the Finance Committee has proposed a distribution of E4 004 000 for the six-month period under review.
However, the directors are expected to meet in April 2023 at which time the interim distribution will be confirmed, after which an announcement of important dates will be published.