It can be read here: <novapropertygroup.co.za/index.php/communiques/#flipbook-df_6497/1/> novapropertygroup.co.za/index.php/communiques/#flipbook-df_6497/1/
It provides information on the nine remaining commercial properties in the portfolio including:
* information on the Amogela/Liberty Mall in Welkom which was sold in 2021and transferred into the name of the new owner in December of that year but for which payment has never been received (See Nova Debenture Trustee JP Tromp’s exposé on this property at <www.carian.co.za/post/debentures-linked-to-amogela-mall-liberty-mal l> www.carian.co.za/post/debentures-linked-to-amogela-mall-liberty-mall )
* the provisional liquidation of Flora Centre because of default on a loan but without any mention of their ploy, in defiance of the CIPC embargo on property asset disposal, to offer(sacrifice) the Carletonville and Carnival Centre properties in settlement and thus escape the liquidation and retain the more valuable property (See our 28 November post on Flora Centre in both the web site and the Facebook page)
Significantly, if provides no information on the remaining (do they indeed remain on the books?) seven residential development properties as was also the case in their previous Communiqué of December 2023 (although that one did have content on Theresapark which spurious content was only present to score points about the CIPC asset disposal embargo having, they said, canned development finance)
What does it actually tell us? Perhaps our email sent to Cuma Zwane at CIPC, forwarding a copy of the Communiqué to him, states what the general level of acceptance and belief will be. Read here: <www.ndcag.co.za/go/20260112-1> www.ndcag.co.za/go/20260112-1
Of course, a Communiqué, the purpose of which is, clearly, to present a picture of a viable company working in the interests of the Debenture Holders its primary creditor – (and hopefully, those Sharemax investors who opted to become Shareholders back in 2010/11) serves no point when the last annual financial statements published (for year-end 2024) show a picture which is based on the company information that is as much as three years old – meaning out of date. The 2025 AFS are as yet, unpublished and Nova continues (in the Communique) to justify its stance that the Companies Act does not require publication within six months after financial year-end
We use this post to sketch a picture of the level of risk that the company and the Debenture Holders are currently facing:
Firstly, bear in mind the Missing 414 million being the properties previously sold without corresponding debenture repayment (See JP Tromps post on this at <www.carian.co.za/post/the-missing-r-414-694-327> www.carian.co.za/post/the-missing-r-414-694-327) in pursuit of Novas Optimal Value Enhancement for Debenture Holders through redeployment of proceeds of disposed of properties ito Novas Capital Growth Strategy a strategy that has failed miserably, perhaps deliberately so!
Of the nine commercial properties that remain in the portfolio, based on the 24 AFS content (but two years out of date now), the following are already gone or at risk:
Village Mall: 24 AFS value = 42.6m – attached under the defaulted Beneficio loan judgements
Courtside Centre: 66.6m – also lost out of the Beneficio loan
Carletonville Centre: 53.8m – potentially lost under Novas defaulted Flora Centre loan and offered to the financing bank as part settlement
Carnival Centre: 29.7m – likewise as for Carletonville
Total asset value lost or at risk: 192.7m
Add to these the apparently hopeless/basket cases of:
Zambezi/Tshwane China Mall: 539.0m
The Villa: 750.0m
Asset value at risk: 1,289.0 Billion
Click here for a recent Daily Investor article on Zambezi: <www.ndcag.co.za/go/20260112-3> www.ndcag.co.za/go/20260112-3
Click here for a video on The Villa shell (or, the eyesore, about which there are frequent media complaints): <www.ndcag.co.za/go/20260112-2> www.ndcag.co.za/go/20260112-2
What assets will be left available to eventually provide Debenture repayment?
Del Judor: 17.9m
Flora Centre: 217.4m
Waterglen: 281.8m
Total remaining commercial assets: 517.1m
Is this value of assets ever going to be able to provide repayment of commercial property related debentures to the value of 1,963.9 BilIion as per the 24 AFS?
(We Have excluded addressing the residential development properties and related debentures in this post due to the minimal information contained in the 24 AFS and the total lack of any information in the latest Communiqué)
So, what are Novas prospects for this year? Can anyone argue that the company is viable and a going concern? What can we expect to see in the 25 AFS when they are eventually released? Is analysis of the AFS likely to produce opinion, yet again, that the company is insolvent?
And most important of all: is there any possibility, however tenuous, that the remaining debentures (2.2 Billion as of the 24 AFS) will ever be repaid?