Despite selling properties worth R140m over five years, it has just R4.4m in the bank.
The Nova Property Group is in a desperate financial position and is unable to repay its debenture holders – former Sharemax investors – anytime soon, if ever.
Over the past five years, Nova realised R313 million in cash through property sales but only returned R50.4 million to debenture holders. The AFS does not make any provision for the repayment of debentures in the current financial year and hinted that it may take many years. Read: Sharemax rescue vehicle makes a U-turn on payments to investors Nova board may not have the ‘capacity or intent’ to repay former Sharemax investors Response
The City of Mbombela cut the electricity supply to two of Nova’s shopping centres in Nelspruit due to the non-payment of its municipal account. This photo shows a notice on the door of the Bazaruto Restaurant in Courtside, which had to close its doors. Image: LowvelderIt is doubtful that Nova can recover financially to any extent to repay debenture holders as it has sold most of the properties in its portfolio.
Nova republished a materially different set a week later. The most notable change was a R10 million positive swing in the company’s cash balance, from a negative R5.7 million to a positive R4.4 million. Nova was confident it would win the case and accounted for the R19.3 million as income in its 2021 AFS as it believed there was “virtual certainty” its counterclaim would be successful.
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