The property market in Botswana remains subdued due to the economic climate prevailing in the country resulting in little demand for space from new investors, a property investment company has announced.
In its 31 January 2019 financial report released this week, the Botswana Stock Exchange (BSE) listed company, Turnstar Holdings said a slow-down had been recorded in companies not opening new retail stores in the country. Addressing shareholders and the media at the Turnstar Holdings financial report ending 31 January 2019 this week, the group’s Managing Director and Founder , Gulaam Abdoola was, however, quick to announce that the company was in a stable financial position with its assets solid and the company recorded asset value of P2 billion for the year under review .
“In Botswana the property market is challenging at present, due to the economic climate prevailing. There is very little demand for space, from new companies coming to Botswana,” Abdoola announced. He said most retail space in the country was occupied by large South African retail companies who were facing operational challenges in that country.
“These groups are also slowing down on opening new stores, as they are not performing well in South Africa. There are a few citizen retail companies that occupy space, on a very limited basis. However, our properties are still in demand and are doing well. “The retail market grew despite the prevailing market conditions in the industry. However, in the short-term, it is likely that the retail market space has reached saturation. The average yields for retail properties in Gaborone were eight percent,” said Turnstar Holdings MD.
The latest financial report shows that the group’s properties in particular, the Game City in Gaborone and Nzano Shopping Mall in Francistown posted fair value gains. Game City is Turnstar’s flagship and it is also the premier retail shopping centre in Botswana. “Game City had a tenancy rate of approximately 95 percent and continues to attract large listed or multinational companies who constitute approximately 80 percent of tenants as well as all the large banks. The mall posted positive growth in rentals and yields during the year and continues to record the highest ‘footfall’ of retail malls in Botswana,” said Abdoola.
Turnstar also own and manage the Mogoditshane Centre, the Turnstar House, the GICP at the Commerce Park, Tapolongo Estate, and Mogoditshane Townhouses all located in Gaborone. “Revenue generated from commercial properties is P30 million during the reporting period with an average yield of eight percent. Revenue generated from residential properties is P86 million. Turnstar’s light industrial property in Commerce Park had a full occupancy rate during the reporting period. Demand for light industrial properties in Gaborone and in prime location remained strong,” Abdoola told shareholders.
The group has also in recent years ventured into Dar Es Salam in Tanzania and Dubai, the largest and most populace city in the United Arab Emirates and Turnstar is operating malls and offices in the two countries. The Milimani City in Tanzania is a US$100 million mixed use premier shopping and conference complex. Turnstar also acquired an office block in Dubai valued at US$8.35 million. The office is being leased on a long-term basis with a net rental yield of seven percent.
“In Tanzania there a lot of international brands waiting to come to the mall. (In Dubai), it is busy bustling with tons of tourists and new emigrants coming in. There is still a lot of opportunity there and we are busy exploring a few proposals,” the Turnstar MD said. However, Abdoola told shareholders that the company would not buy properties just to create bulk in the company, but that future acquisitions would be for adding value to the company and the shareholders.
“Turnstar is very keen to expand its Botswana portfolio. We are considering a few acquisitions and will be carrying out due diligence,” he said. Meanwhile, Turnstar board chairman, Patrick Balopi has announced the retirement of Ishmael Nshakazhogwe as the company’s non-executive director. Nshakazhogwe is the chairman MD of Zambezi Group of Companies and Thailand’s Consulate General to Botswana. “Mr Nshakazhogwe has served on the board of Turnstar, since its inception 2002,” said Balopi. Turnstar employs 125 people.
Chinaâ€™s Gross Domestic Product (GDP) expanded by 3% year-on-year to 121.02 trillion yuan ($17.93 trillion) in 2022 despite being mired in various growth pressures, according to data from the National Bureau Statistics.
The annual growth rate beat a median economist forecast of 2.8% as polled by Reuters. The countryâ€™s fourth-quarter GDP growth of 2.9% also surpassed expectations for a 1.8% increase.
In 2022, the Chinese economy encountered more difficulties and challenges than was expected amid a complex domestic and international situation. However, NBS said economic growth stabilized after various measures were taken to shore up growth.
Industrial output rose 3.6% in 2022 over the previous year, while retail sales slightly shrank by 0.2% data show that fixed-asset investment increased 5.1% over 2021, with a 9.1% hike in manufacturing investment but a 10% fall in property investment.
China created 12.06 million new jobs in urban regions throughout the year, surpassing its annual target of 11 million, and officials have stressed the importance of continuing an employment-first policy in 2023.
Meanwhile, China tourism market is a step closer to robust recovery. Tourism operators are in high spirits because the market saw a good chance of a robust recovery during the Spring Festival holiday amid relaxed COVID-19 travel policies.
On January 27, the last day of the seven-day break, the Ministry of Culture and Tourism published an encouraging performance report of the tourism market. It said that domestic destinations and attractions received 308 million visits, up 23.1% year-on-year. The number is roughly 88.6% of that in 2019, they year before the pandemic hit.
According to the report, tourism-related revenue generated during the seven-day period was about 375.8 billion yuan ($55.41 billion), a year-on-year rise of 30%. The revenue was about 73% of that in 2019, the Ministry said.
The state of the art jewellery manufacturing plant that has been set up by international diamond and cutting company, KGK Diamonds Botswana will create over 100 jobs, of which 89 percent will be localized.
Local diamond and metal exploration company Tsodilo Resources Limited has negotiated a non-brokered private placement of 2,200, 914 units of the company at a price per unit of 0.20 US Dollars, which will provide gross proceeds to the company in the amount of C$440, 188. 20.
According to a statement from the group, proceeds from the private placement will be used for the betterment of the Xaudum iron formation project in Botswana and general corporate purposes.
The statement says every unit of the company will consist of a common share in the capital of the company and one Common Share purchase warrant of the company.
Each warrant will enable a holder to make a single purchase for the period of 24 months at an amount of $0.20. As per regularity requirements, the group indicates that the common shares and warrants will be subject to a four month plus a day hold period from date of closure.
Tsodilo is exempt from the formal valuation and minority shareholder approval requirements. This is for the reason that the fair market value of the private placement, insofar as it involves the director, is not more than 25% of the companyâ€™s market capitalization.
Tsodilo Resources Limited is an international diamond and metals exploration company engaged in the search for economic diamond and metal deposits at its Bosoto Limited and Gcwihaba Resources projects in Botswana. Â The company has a 100% stake in Bosoto which holds the BK16 kimberlite project in the Orapa Kimberlite Field (OKF) in Botswana.