The Botswana Stock Exchange (BSE) quoted property outfit, Turnstar Holdings has said trading license issue for some of its foreign tenants caused loss of revenue during 2017.
The company managing director, Gulaam Husain Abdoola said that prospective tenants who had signed pre-leases could not occupy the leased stores due to lack of trading licenses resulting in revenue loss for Turnstar Holdings.
The Game City property is currently the largest shopping centre in Botswana and the only regional shopping centre in Gaborone. The shopping centre is within proximity of the Gaborone International Finance Park and Commerce Park, two highly requisite commercial establishments. The area is also characterized by high-end residential homes and is set to benefit from the upcoming development of new houses within its catchment area.
“The Group results for the year ended 31st January 2018 will be lower than those reported in the 31st January 2017 period,” Abdoola stated.
Meanwhile in Tanzania, also the delay in the completion of the construction resulted in a delay in leasing of the new developments. Added is that the current downturn in the economy has affected the Mlimani commercial offices and conference centre venues.
Abdoola also blamed the poor performance on the currency exchange rates as the US Dolar depreciated agingst the Botswana Pula significantly during the year ended 31 January 2018.
“The interest charges on the completed construction projects, has to be incurred as well. The delayed income from the new completed areas has affected the Group’s operating profits,” reads the statement.