Turnstar, listed on the local bourse, has been pumping capital into the Tanzanian and Dubai markets investing in the retail property sector, seeking to make hay whilst it shines on other Eastern African markets.
In an exclusive interview with BusinessWeek, Turnstar Managing Director Gulaam Abdoola revealed the company had enjoyed stable asset and bottom-line growth and sought to leverage its expertise and financial muscle as a comparative advantage to enter other African markets.
“Africa as a continent remains untapped. The continent has the population and we are a company that wants to grow,” he said
“Tanzania has given us an understanding of the eastern African markets, we now understand the culture and we know the trading conditions and economies there, we have the reputation and we can prove it,” he said
Abdoola further shared that Turnstar was feeling the pinch of a slowing local economy, which presented fewer and fewer opportunities for massive expansion due to poor macros and micros. Turnstar MD pointed out that the 'un-vibrant' economy presented limited opportunities for the expansion Turnstar envisions.
“There are no new players in the economy, when you see a new tenant in a mall it is usually a tenant leaving from another mall not an entirely new client coming to invest in the country. That shows we are not attracting investors in the country and it is bad for business,” he said In the latest financial results, rental revenues for the group rose by 13% totalling P328.5 million compared to the corresponding year which ended in P291.3 million. Turnstar executives apportioned the surge in rental revenues to strong rental income growth in all jurisdictions in which it operates.
In 2017, the enterprise expanded its Game City shopping complex to include additional retail space, a fashion avenue, a restaurant area including a food court, an entertainment area, and a parkade. The project was financed through a long-term loan facility of P250 million from the First National Bank of Botswana (FNBB).
Other acquisitions included the purchase of a prime property complex in Tanzania for $77 million (P557.5 million), the closure of the deal gave full ownership to Turnstar which now wholly owns Mlimani. The Tanzania assets consist of a multi-business area comprising a shopping centre, an office complex, a top-class conference centre, and a residential housing estate with 50 units.
