Turnstar buys P85m Dubai property
Pauline Dikuelo | Tuesday May 23, 2017 18:00
The 15.6 square metre Palazzo Veniezia house has eight units, one shop and a double-parking basement.
According to the group’s managing director (MD) Gulaam Abdoola, the building is suitable for both retail and commercial use. He added that they were fortunate to find this building after months of searching.
“We want our brand to be known worldwide hence the reason why we want to change the name of the building to Turnstar House. We chose that area which is still developing because Dubai is growing at a fast pace and also we want to start small and establish our brand first,” he said.
The MD also noted that they have already identified a tenant, which is a logistics company under a six-year lease, which is a flat three-year lease plus 10% escalation on the second term. The building has been leased on P3.1 million per annum on rent which the MD said would contribute about 10% net return back to their pockets.
Further, Abdoola said they have plans to extend their portfolio in the country but have not been successful in getting the properties that can suit their portfolio noting that they want to focus more on retail and residential industries.
“We are keen to increase our portfolio in the country but we cannot find the assets that suit our portfolio. However once we get them, we will invest,” he said.
In addition, he said they are also considering investing in the United Kingdom (UK) noting that they have been offered properties in the North West of the UK.
Turnstar is currently the largest property company listed on the BSE by value of P1.8 billion and by property base assets of P2.2 billion. In Botswana they have five properties in Gaborone, two in Mogoditshane and one in Francistown. It has four in Dar-es-Salaam. Turnstar also have retail bias with unique regional shopping centres such as Game City in Gaborone and Mlimani City in Dar es Salaam.
According to their financial results for the year ended January 31, 2017, total rental income from Turnstar’s Botswana portfolio decreased by two percent due to the sale of the Fairground Office Park property and displacing of tenants during construction. The total rental income from Turnstar’s Tanzania portfolio increased by eight percent.