The owners of Game City Mall in Gaborone have attributed a 4 percent growth in assets to a surge in investment property value but bemoaned a lacklustre investment appetite in the local market.
The group Managing Director, Gulaam Husain Abdoola however remained optimistic that his company will breach the P3 billion mark asset value in the near future. Turnstar assets increased from P2.6 billion in 2022 to P2.8 billion in 2023.
The BSE-quoted property investment giant remains optimistic about the future, emphasising the company’s commitment to strategic expansion and maintaining its leadership in the property sector. Abdoola highlighted the recent acquisition of Lotsane Junction in Botswana, describing it as an exceptional quality asset that significantly boosts their portfolio, now valued at over P2.850 billion with approximately 105,000 m² of Gross Lettable Area (G.L.A). This acquisition aligns with the group strategy of leveraging strengths and exploring new opportunities to drive value for shareholders and positively impact the markets.
Turnstar is currently negotiating three additional acquisition deals, with further details to be disclosed once necessary protocols and requirements are met, he added.
Abdoola also expressed optimism about the East African market, noting its rapid growth and the company’s already established presence in the market as an advantageous position to capitalise on this regional boom. He anticipates substantial returns from their growing investments in East Africa, supporting Turnstar’s long-term growth objectives.
However, Abdoola also voiced concerns about the Botswana market, particularly the lack of new investors. Despite these challenges, Turnstar continues to appreciate its role in driving Botswana’s growth narrative and remains cautiously optimistic about navigating this landscape. He hails the company’s strong market presence and effective operational strategies, crediting them for ensuring continued growth, expansion, and profitability amidst such challenges, including global challenges.
Abdoola emphasised the importance of staying open to learning, evolving, and demonstrating perseverance, determination, and strategic foresight. He added that this approach has been key to Turnstar’s mission of investing, managing, and growing properties that deliver real returns for communities and investors with sustainable results.
The Managing Director said global challenges such as conflicts in the Middle East and Ukraine, coupled with the long-term effects of COVID-19, have disrupted trade and supply chains, and increased costs in the property space.
Despite these hurdles, Turnstar aims to maintain a satisfactory return on investment for shareholders by effectively matching property costs. Abdoola acknowledged that Turnstar is not immune to global influences like sustainability, ESG focuses, and climate change.
The local economic performance has been impacted by the appreciation of the US Dollar against the Botswana Pula, rising unemployment, and changes in the global diamond market. Despite these economic pressures, Turnstar has maintained high occupancy rates, showcasing its resilience and strategic focus on growth and expansion, as it maintained its status as the largest property company in Botswana.
Turnstar’s financial performance continues to impress investors, with rental revenue increasing by 13 percent to P328.5 million from P291.3 million in 2023. Abdoola attributed this revenue growth to strong rental income across all related entities. The company also reported a 15 percent increase in operating profit and a 58 percent increase in profit before tax.