Gulaam Abdoola to earn $672,000 from stake in Turnstar Holdings

Botswana businessman and serial investor Gulaam Abdoola will earn $672,000 in dividends and debenture interest from his stake in Turnstar Holdings Ltd.

Turnstar Holdings is a property loan stock company listed on the Botswana Stock Exchange since 2002. It holds eight properties in Botswana, four in Tanzania and one in Dubai, including premium retail shopping centers, multi-residential estates and office buildings.

Abdoola is a founding member of Turnstar Holdings and served as the managing director at its inception.

The businessman is one of the holding’s substantial shareholders, with 80 million shares held through GH Group.

His share qualifies him to earn a dividend of about BWP 3.57 million ($333,000) and a debenture interest of about BWP 3.63 million ($339,000), putting his total expected earnings from his stake in the holding at roughly BWP 7.2 million ($672,000).

During a recent meeting, members of the board recommended rewarding shareholders with a final distribution of about 9 thebe, an equivalent of BWP 0.09 ($0.0084). This was reflected in its annual financial statement for Jan. 31, 2020 as the final dividend.

According to the company’s policy, the distribution includes a dividend of BWP 0.0446 ($0.0037) and a debenture interest of BWP 0.0454 ($0.0047). Turnstar was able to sustain its yearly distribution to shareholders despite the disruption occasioned by the COVID-19 pandemic, which impacted its earnings during the year under review.

Earlier this quarter, the famed owner of the Game City Mall reported a 4.57-percent decline in revenues triggered by the two government-enforced COVID-19 lockdowns last year.

Additionally, the weakening of national currency against the U.S. dollar triggered a net foreign exchange (forex) loss on a BWP 2.6-million ($243,000) loan.

These combined circumstances pressured Turnstar’s profit before tax downward for the year to at least 13 percent lower than the BWP 94 million ($8.78 million) reported in the period ending Jan. 31, 2020.

Abdoola founded Turnstar Holdings in 2002.

The diversified Sub-Saharan African property loan stock company’s $100-million Mlimani City complex in Tanzania is said to be among the best in East Africa.