by Kobus Potgieter | Feb 25, 2025 | Announcements
Die 2024 Jaarlikse Finansiële State (JFS) is uiteindelik – amper ‘n jaar na die jaareinde van 28 Februarie 2024 – vrygestel en op die Nova-webwerf gepubliseer. Sien: [https://novapropertygroup.co.za/> Downloads > Financial Statements](https://novapropertygroup.co.za/> Downloads > Financial Statements).
Hoekom het dit so lank geneem? En hoekom is dit altyd laat? Hoekom sukkel Nova blykbaar altyd om ouditbevestiging te kry? Gee Nova enigsins om, of is die uitvoerende bestuur se enigste fokus om die maatskappy tot in die grond te bestuur terwyl hulle, klaarblyklik, soveel moontlik waarde vir hulself probeer onttrek?
Ons verstaan dat Moneyweb binnekort hul gebruiklike oorsig van die JFS sal publiseer, en ons sal hier en op die webwerf inlig wanneer dit beskikbaar is.
Is dit beduidend dat geen Kommunikasie gelyktydig met die 2024 JFS gepubliseer is nie (in teenstelling met die jare 2021, 2022 en 2023 waarvoor een gepubliseer is)? Hoekom geen Kommunikasie vir 2024 nie? Die Kommunikasies verskaf (of behoort te verskaf) ‘n sekere vlak van inligting oor die individuele eiendomme wat aanvullend tot die inhoud van die JFS is. In die Desember 2023 Kommunikasie het die maatskappy sulke aanvullende inligting oor die nege kommersiële eiendomme in die portefeulje verskaf, maar net oor een (Theresa Park) van die residensiële ontwikkelings.
Ons plaas die volgende om kwessies aan die lig te bring wat Nova in die donker hou, wat beteken dat die Skuldbriefhouers – die maatskappy se grootste krediteure – geen idee het van die werklike situasie binne die maatskappy nie.
Ons het laat verlede jaar ‘n video ontvang wat die leegheid van die Tshwane China Inkopiesentrum (voorheen Zambezi Mall) toon. Sien skakels hieronder na Businesstech se plasing oor die eiendom.
Net so het ons ‘n videoklippie ontvang oor die toestand van die voormalige Liberty Centre in Welkom – nou herdoop tot Amogela Mall. Sien skakels hieronder na videoklippies en ‘n mediaplasing.
Ons is ook al lank bewus van die onwettige besetting van die Waterfall Residensiële Landgoed in Rustenburg deur informele inwoners. Sien gepaardgaande foto’s.
Hierdie situasies laat dadelik ‘n vraag ontstaan oor Nova se prestasie en vooruitsigte.
‘n Tweede vraag is: Hoekom gebeur hierdie situasies en wat word gedoen om dit reg te stel – vanuit die oogpunt dat die maatskappy ten volle in beheer van sy sake en bates is en vorentoe kan beweeg na terugbetaling van die uitstaande skuldbriewe (nie dat ons enige vertroue het dat die uitvoerende bestuur dit regtig sal regkry nie)?
En, ‘n derde vraag: Hoeveel ander eiendomme is ook “in nood” – in een of ander vorm – uit die oorblywende nege kommersiële en sewe residensiële ontwikkelings wat nog op die boeke is?
Ons weet nie, want Nova bly kampioene in nie-kommunikasie. Die laaste Kommunikasie wat uitgereik is, was in Desember 2023 as ‘n begeleiding tot die 2023 JFS. Die Kommunikasies was oorspronklik bedoel om kwartaalliks uitgereik te word en behoort die Skuldbriefhouers in te lig oor die status, prestasie en ander relevante inligting oor die portefeulje se eiendomme (wel, dié wat oorbly nadat baie oor tyd verkoop is sonder gepaste skuldbriefterugbetaling). Verlede jaar se Kommunikasie het ver tekort geskiet in die verskaffing van ‘n voldoende prentjie van die oorblywende eiendomme, en daar was nog geen in 2024 nie.
Kort besonderhede oor die drie eiendomme:
Liberty/Amogela in Welkom
Hierdie eiendom is in 2021 verkoop. Dit verskyn nie in die 2022 JFS nie, en in die gepaardgaande Kommunikasie is aangedui dat “die eiendom is verkoop en die oordrag is op 13 Desember 2021 geregistreer”. Die verkoopprys is nie bekend gemaak nie. Nodeloos om te sê (maar ons sê dit in elk geval), die relevante skuldbriewe is nie terugbetaal nie (boekwaarde in die 2023 JFS was R21.6 miljoen).
Daar word beweer dat die koper nooit vir die eiendom betaal het nie, maar, gegewe Nova se rekord sedert 2013, sal lesers waarskynlik sinies lag oor ons voorstel dat die Liberty/Amogela-verwante skuldbriewe dalk sou terugbetaal gewees het as die verkoopproses werklik plaasgevind het.
Om alles te kroon, is die skuldbriefwaarde van Amogela in die 2024 JFS net R5.6 miljoen – ‘n afname van R16 miljoen van die 2023-figuur. Wat beteken dit? Het Nova ‘n deel van die Amogela-skuldbriewe terugbetaal sonder om dit aan te kondig? Ons glo nie, en moet dus vra: Waarom die skuldbriefskrywing afwaarts, en wat is die impak op die relevante Skuldbriefhouers?
Liberty/Amogela Mall Skakels:
Facebook Video
Facebook Watch
Nuus24 Artikel
Zambezi/Tshwane China Inkopiesentrum
Het hierdie eiendom ooit sonder probleme bestaan? Daar was geskil met Capicol (die ontwikkelaar), oorstromings, lae okkupasiesyfers en betalingsprobleme met die Tshwane Metropolitaanse Munisipaliteit. Nou is daar amper nul besetting en geen inkomstestroom nie, maar daar moet steeds betalings vir dienste gemaak word – tensy Nova weer wanbetaling doen, soos in 2023 met 12 eiendomme wat deur die Quatro Group bedien is.
Zambezi/Tshwane China Mall Skakels:
YouTube Video
BusinessTech Artikel
Waterfall Residensiële Landgoed
Ons het lankal geweet van die onwettige besetting, en is ingelig dat Nova in gesprekke was (of is) met die Rustenburg Plaaslike Munisipaliteit oor die kwessie. Maar natuurlik het Nova niks hieroor bekend gemaak nie. Gaan Nova ooit die eiendom kan herwin, of is dit nou ‘n verlore saak?
Debentures in die 2023 JFS:
- Liberty/Amogela: R21.6 miljoen (maar R5.6 miljoen in 2024 JFS)
- Zambezi: R503.4 miljoen
- Waterfall: R47.2 miljoen
Ons twyfel steeds of die uitvoerende bestuur enigsins die vermoë het om hierdie skuldbriewe terug te betaal.
As enige van bogenoemde verkeerd is, verwelkom ons ‘n verduideliking van die Nova-direksie – maar meer belangrik, ‘n volledige antwoord oor die gapings wat hierbo uiteengesit is. Dit sou ten minste ‘n werklike kommunikasie wees – ‘n seldsame gebeurtenis in die afgelope paar jaar.
by Kobus Potgieter | Feb 25, 2025 | Announcements
The 2024 Annual Financial Statements (AFS) have – at last, and almost a year after the year-end of 28 February ’24 – been released and published in the Nova web site. See https://novapropertygroup.co.za/> Downloads > Financial Statements
Why has it taken so long? And why are they always late? Why does Nova always seem to struggle to get auditor sign-off? Does Nova even care or, is the Executive’s only focus that of running the company into the ground while they, apparently, extract as much value for themselves as they can?
We understand that Moneyweb will be publishing their usual review of the AFS soon and we will inform here and in the web site when it is available
Is it significant that a Communiqué has not been published simultaneously to the ’24 AFS (as opposed to the years 20121/2/3 for which one was published). Why no Communiqué for ’24? The Communiqués provide (or presumably, do) a level of information on the individual properties that is supplemental to the AFS content. In the December ’23 Communique, the company provided such supplemental information on the nine commercial properties in the portfolio but only on one (Theresa Park) of the residential developments
We post the following to raise some issues which Nova have been keeping in the dark meaning that the Debenture Holders – major creditors of the company – have no idea of the real situation within the company
- We received a video on late last year showing the empty state of the Tshwane China Shopping Mall, formerly Zambezi Mall. See links below to Businesstech’s posting on the property
- Likewise, we also received a video clip on the state of the former Liberty Centre in Welkom – was renamed Amogela Mall. See below links to video clips and a media post
- We’ve also long been aware of the illegal occupation of the Waterfall Residential Estate property in Rustenburg by informal settlers. See accompanying pictures
These situations immediately raise a question about Nova regarding its performance and its prospects
A second question is: Why these situations and what is being done to remedy them – obviously from the point of view of the company being fully in control of its affairs and assets and able to move forward towards repayment of the outstanding debentures (not that we have any confidence in the executive actually achieving this)?
And, a third question: How many other properties are also “in distress” – in one form or another – out of the remaining nine commercial and seven residential development properties that remain on the books?
We don’t know because Nova remain champions at non-communication. The last Communiqué issued was in December 2023 as an accompaniment to the ‘23 AFS. The Communiqués were originally intended to be issued quarterly and are supposed to keep the Debenture Holders informed of the status, performance and other information relevant to the portfolio properties (well, those that are now left in the portfolio anyway after many were sold off over time without relevant debenture repayment). Last year’s Communique fell far short of providing an adequate picture on the remaining properties and there haven’t been any during 2024 and so far this year
Some brief details about the three properties:
Liberty/Amogela in Welkom
This property was sold during 2021. It does not feature in the 2022 AFS and in the accompanying Communiqué it is stated that “the property has been sold and transfer was registered on 13 December 2021”. The selling price was not disclosed. Needless to say (but we’ll say it anyway), the relevant debentures were not repaid (book liability in ’23 AFS was 21.6 million). Perhaps that was impossible because, according to rumour, the buyer has never paid for the property (but, given Nova’s track record since 2013, readers may well laugh cynically at our suggesting that the Liberty/Amogela related debentures might have been repaid had the sale proceeds actually been received). AFS ’21 book value for the property was 21.3 million
In all other property sales since 2012 the sale proceeds were retained and applied to working capital to keep the company afloat (until August 2022 when CIPC issued a Compliance Notice prohibiting the sale of further of the properties). This was an arbitrary and unilateral decision by the board without informing, consulting or at the very least, a presentation of some sort communicated in which they would have motivated their actions. And they expect us to trust them!
And, to cap it all, the liability value of the Amogela related debentures listed in the ’24 AFS is only 5.6 million, a decrease of 16 million from the 2023 figure. What does this mean? Have Nova repaid some of the Amogela debentures? They’d do that without trumpeting that they had done so? We don’t think that they have and thus, must question: Why the liability value write-down and what is the potential impact on the relevant Debenture Holders?
And, if Amogela Mall is both derelict and unlisted in the financial statements, why does it still appear in the scrolling images of the portfolio of commercial properties in the home page and advertising a Gross Letting Area of 15 991 square metres? Misleading if not misrepresentation, surely?
Liberty/Amogela
Zambezi/Tshwane China Shopping Mall
Has this property ever been without problems? – issues between Nova and the developer, Capicol, flooding, low occupancy rates and services payments issues with Tshwane Metropolitan Municipality. Now, all but zero occupancy meaning no income stream but with payments for services still required (unless Nova are defaulting again – as happened with twelve properties contractually serviced by the Quatro Group which led to an application for liquidation in 2023 but averted when an agreement was reached and with Village and Courtside Centres in Mbombela, in the same year, where power was cut off due to non-payment for municipal services)
Zambezi/Tshwane China Shopping Mall
Waterfall Residential Estate
We’ve known for a good while about the illegal occupation situation and have also been informed that Nova is (or has been) in discussion with Rustenburg Local Municipality on the matter. Of course, Nova have not disclosed anything about this. We have no information on the current state of play and we wonder if Nova will ever be able to recover possession (do they actually carde?) or, is this property now a lost cause and will have to be written off? AFS ’23 book value was 50.8 million
If there’s any spark of good news in all of this, it is that in AFS ’23, the debenture liabilities for these properties is present and they show as:
- Liberty/Amogela: 21.6 million (but see above re reduced value in the ’24 AFS)
- Zambezi: 503.4 million
- Waterfall: 47.2 million
However, note our comment above regarding lack of confidence in the executive to ever deliver repayment
Those liabilities must remain whatever the fate of the underlying properties and they are so listed in the ’24 AFS. In fact, in the Director’s Report in AFS ’24 it was stated that:
The corresponding debenture liabilities remain payable in accordance with the provisions of the Schemes of Arrangement.
The downside in all of this is the wider implications that events/situations like the above have. They just weaken the company which, for many years now has been subject to ongoing opinion that it just doesn’t have the capability to repay, that it is technically insolvent, and that there is no intention to repay further anyway (an opinion stated by the CIPC in September ’22 – as quoted by Moneyweb). This, despite all of the excuses and assurances issued down the years and which for most of the duration of the company and its assets, have only been received with a great deal of skepticism if not outright rejection
Is all of the above accurate? To the best of our knowledge, yes. But in the event that it isn’t, we would welcome a communication from the Nova board pointing out where we may be incorrect but more importantly, filling in the gaps detailed above. Plus, of course, it would be an actual communication, a very rare event during the past number of year.
