The Botswana Stock Exchange (BSE) quoted property giant, Turnstar Holdings has strategically limited its participation in the office property sub-sector with the sale of its P121 million worth building located at the Fairgrounds office space.
Turnstar Holdings directors confirmed last week that they have since sold the office park property to Botswana Life Insurance for the sum of P129 million excluding Value Added Tax (VAT). The sale translates into a profit of P7.5 million and resulted in a reduction of 8.58 percent in Turnstar’s total net assets.
The group, which owns Game City Mall in Gaborone, says the Fairgrounds office park sale is consistent with a strategic imperative to manage exposure to the office property sub-sector in Botswana which is expected to remain under pressure with increasing vacancies in the medium term.
The group directors further revealed that in order to complete financing of the expansion of its Tanzanian property, Mlimani City, it intends to launch convertible bonds. Details which have been made public show that the bonds will be expected to raise gross proceeds of US$ 30, 000,000. It is expected that the convertible bonds, which will be offered to qualifying institutional and retail investors only will be issued during May 2016.
Mlimani City Tanzania is being expanded to include additional retail and commercial space including basement parking, additions to the Conference Centre and a Botanical Garden.
Back home, Turnstar Holdings is also upgrading Game City mall as it looks to bolster the status of the shopping centre as the biggest in the city and the country at large. The expansions will include additional retail space, a fashion avenue, restaurant areas including a food court, entertainment areas and a parkade. The building plans have been approved by the authorities.
The Botswana Stock Exchange (BSE) listed property outfit first announced its plans in 2014 to re-develop the Gaborone mall in a bid to ensure it remains the premier centre as more competitors have entered the shopping mall space.
Elsewhere Turnstar’s portfolio include Game City shopping Centre, Nzano Shopping Centre, in Francistown, Fairgrounds Office Park, Mogoditshane, Supa Save Mall, Turnstar House, Main Mall, offices in Commerce Park, Mogoditshane Flats, Hyundai Warehouse, Tapologo Estates, Mlimani city in Tanzania.