Turnstar considers Game City expansion

Brian Benza
Staff Writer | Tuesday February 5, 2008 00:00

Announcing its interim results for the year ended 31 October 2007, the property company said it had identified a number of prospective acquisitions, including Game City Phase 2, which involves a 10,000-square metre extension of its current flagship in Kgale.

'The company has also identified for acquisition a 20,000-square metre retail lifestyle centre that is being developed by a joint venture between Bifm and RMB Properties of South Africa.

'The company is also to acquire a 7,000-square metre office block adjacent to Fairgrounds Office Park, which will be known as Fairground Phase 2.

'We have already received an overwhelming response from potential and existing tenants and will take advantage of the demand for office space,' said the company. In the results, revenue was up 3.1 percent to P67.9 million, while profit after tax declined to P50.3 million. A 42.8 percent fall in basic earnings per linked units was also realised, although distribution per share was up 2.5 percent for the period under review to 10.45 thebe. Meanwhile, Sefalana also released its interim results for the half-year ended 31 October in which the company realised a 63 percent jump in revenues to P674.6 million, leading to a profit after tax rise of 21.2 percent to P14.8 million.

However, the massive rise in revenue came at a time when the company also incurred significant expenditure in the review period.'The group incurred substantial expenditure after the acquisition of shares in Sefcash, which is now a subsidiary of Sefalana. More expenses were incurred in the implementation of a new computer system and re-branding of all its cash ad carry stores. Despite this, the group has seen substantial growth in its revenue and profitability from both Sefcash and another subsidiary, the MF Group.

Sefalana declared a gross dividend  of 5 thebe per share payable to shareholders registered by the close of business on 28 March 2007. However, shareholders have been given the option of capitalisation of dividend  at current market prices of the shares of the company.