Our Approach 2019-02-20T04:36:40+00:00

Our Approach

A holistic approach to commercial property

Nova Properties owns 24 property owning subsidiaries. One of the subsidiaries is Geo Sphere Developments Pty Ltd, which in turn owns 4 property owning subsidiaries.

In addition, Nova Properties owns Enzi Construction Pty Ltd, its own in-house construction company.

In the commercial property space, Nova Properties aims to consistently rejuvenate and maintain its portfolio of assets in order to attract a tenant mix that is both relevant for the location and long-lived, in order to create stable, yet outstanding consumer experiences for the communities that are served by them. This is enabled by its strong, experienced management team and superior in-house accounting, finance, tax and legal, stakeholder administration and communication and property management and leasing resources.

These support functions stem from two companies; Frontier Accounting and Secretarial Services Pty Ltd (Frontier) and Centro Property Group Pty Ltd (Centro), which are 100% owned by Nova Properties, and are staffed by highly skilled and experienced professionals.

These support companies work seamlessly to unpack the value inherent in the Group’s portfolio. Keeping these skills in-house enables significant cost reductions, particularly in the administration and management spaces, which sets Nova Properties apart from other players.

Frontier provides in-house accounting, finance, tax, company secretarial and stakeholder administration and communication services.

Centro provides comprehensive property management services, which include, but are not limited to, the management and control of income, expenses, arrears, vacancies, facilities management, soft services, property maintenance and financial management. Supplementary services include broking (leasing and sales) and project management (new developments, redevelopments and refurbishments).

Broadly speaking, Centro focuses on reducing tenant vacancies to maximise capital growth for Nova Properties. Under-performing tenants are actively reduced, while each property’s tenant mix is analysed to optimise trading density and growth. Indicators like ‘spend-per-head’ and ‘feet through the door’ are monitored as reflections of trading density, which shows year-on-year improvement across the portfolio.

Working cohesively these in-house resources, combined with management and industry expertise at Group level, facilitate and enable upfront planning of asset redevelopment. This long-term planning, as an enabler for reducing tenant vacancies by enhancing the value proposition and reducing the impact of redevelopment, contributes directly to the Group’s bottom-line.

Nova Properties’ focus on ongoing redevelopment and property enhancements also contribute to addressing vacancies by virtue of the process being fast-tracked from the planning stage, to bringing funding partners on board, to leveraging long-term relationships with professionals, such as architects, engineers and quantity surveyors, right through to engaging with development and construction partners.

Commitment to Broad-based Black Economic Empowerment

Nova Properties has a documented 3-year plan to attain a Level-1 BBBEE certification.

By the end of Q1 2021 the objectives are as follows;

  • ownership – 33% black owned;
  • management – Board is 50% black;
  • to train and upskill black entrepreneurs entering the property sector – Nova Properties has entered into an agreement with the Enterprise Development Property Fund (a Level-1, 100% black owned ESD programme), and the programme has already commenced.

Property Portfolio Overview

Retail & Commercial Asset List:

NOPROPERTY NAMEPROPERTY DESCRIOPTIONADDRESSGLAVALUE 2018
1Amogela Mall (Choppies)Community Centre6 Mooi Str, Welkom15 991125 250 000.00
2Athlone Park (Pick 'n Pay)Neighbourhood Centre26-30 Price Str, Athlone Park, Amanzimtoti6 43332 430 000.00
3Benoni HyperCommunity CentreCnr Princess Avenue and East Street, Benoni17 09339 770 000
4Carletonville Centre (Shoprite)Neighbourhood CentreOnyx Ave, Carletonville 9 96151 895 000.00
5Carnival CentreNeighbourhood CentreCnr Rangeview & Airport Rd, Dalpark X11, Brakpan3 10521 360 000.00
6Cold Creek DevelopmentsResidential DevelopmentFarm Tweefontein No 915, Polokwane, Capricorn114 63491 475 000
7Courtside Centre (Spar)Neighbourhood Centre & OfficesCnr Kaapschehoop & Samora Machel Dr, West Acres, Nelspruit6 71676 310 000.00
8De Marionette Centre (Pick 'n Pay)Neighbourhood Centre & OfficesCnr Michelle & Blue Crane Ave, Meyersdal, Alberton5 06858 240 000.00
9Del Judor Mall (Checkers Hyper)Community Centre & OfficesCnr Watermeyer & O.R. Tambo Rd, Witbank21 890218 700 000.00
10Flora Centre (Pick 'n Pay)Neighbourhood Centre & OfficesCnr Conrad & Ondekkers Rd, Florida North23 727238 720 000.00
11Leeuwpoort StreetOfficesCnr Leeuwpoort Street & Short Street, Boksburg3 0207 000 000
12Magalieskruin Centre (Pick 'n Pay)Neighbourhood Centre390 Braam Pretorius Rd, Magalieskruin, Pretoria3 38128 500 000
13Secunda Plaza (Choppies)Neighbourhood CentreHarwood Rd, Secunda CBD6 38017 100 000
14Secunda Centre (Shoprite) Neighbourhood Centre & OfficesCnr Lourens Muller & Diedericks Street8 76824 700 000.00
15The Villa ComplexMega Mixed-Use ComplexThe Villebois Mareuil Drive, Erasmuskloof, Pretoria88 693616 000 000
16The Village Centre (Spar)Neighbourhood Centre & Offices49 Ehmke Str, Nelspruit Central 5 17449 450 000.00
17Town Square (Pick 'n Pay)Neighbourhood Centre53 Kantoor Street, Lydenburg CBD5 50546 500 000
18Waterglen Centre (Pick 'n Pay)Community Centre & OfficesCnr January Masilela Dr, Garsfontein Rd, Waterglen, Pretoria12 451114 130 000.00
19Zambezi MallSmall Regional MallCnr Sefako Makgato Dr & Moloto Rd, Derdepoort, Pretoria31 000332 500 000.00
  388 9902 190 030 000

.

Sector square meterage and vacancy %:

NOPROPERTY DESCRIPTIONRETAIL GLAOFFICE GLATOTAL GLARETAIL VACANCYOFFICE VACANCYRETAIL VACANCY SQMOFFICE VACANCY SQMNOTE
1Amogela Mall (Choppies)1599101599175%0%101470Busy with redevelopment
2Athlone Park (Pick 'n Pay)64330643374%0%47750Preparing for redevelopment
3Carletonville Centre (Shoprite)99610996128%0%23540Preparing for redevelopment
4Carnival Centre31050310513%0%5550Considering alternative use
5Courtside Centre (Spar)52431474671730%16%99666Preparing for redevelopment
6De Marionette Centre (Pick 'n Pay)4331737506815%0%6000Preparing for redevelopment
7Del Judor Mall (Checkers Hyper)2067012202189020%96%36551137Preparing for redevelopment
8Flora Centre (Pick 'n Pay)2022735002372716%20%4836700Require redevelopment
9Magalieskruin Centre (Pick 'n Pay)3381033819%0%3660None
10Secunda Centre (Shoprite)8174594876815%85%1181505None
11Secunda Plaza Centre (Choppies)63800638027%0%18400None
12The Villa Complex886930886930%0%00Under development
13The Village Centre (Spar)24512723517414%32%3471829Require redevelopment
14Town Square (Pick 'n Pay)5505055050%0%00None
15Waterglen Centre (Pick 'n Pay)1054119101245122%80%7891424Busy with redevelopment
16Zambezi Mall310000310000%0%00Require further redevelopment
TOTALS24208612158254244  324415661Vacancy percentage exclude The Villa and Zambezi

Retail & Commercial Asset zoning:

PROPERTYZONINGCOUNCILHEIGHT ZONEFLOOR AREA RATIOCOVERAGE
Amogela Mall Business Type EMatjhabeng A minimum of 8.75m0.5100%
Athlone CentreLimited CommercialEthekwini4 Storeys175%
Carletonville CentreBusiness 3Merafong City 2 Storeys160%
Carnival CentreBusiness 2Ekurhuleni Metropolitan8 Storeys080%
Courtside CentreSpecialMbombela2 Storeys1.260%
De Marionette Centre Business 3Ekurhuleni Metropolitan2 Storeys0.430%
Del Judor MallBusiness 2Emalahleni6 Storeys2Ground-90%; Other-75%
Flora Centre Business 1Joburgh10 Storeys150%
Magalieskruin Centre Business 2City of Tshwane2 Storeys150%
Secunda Centre Business 1Govan Mbeki4 Storeys3100%
Secunda Plaza Centre Business 1Govan Mbeki4 Storeys3100%
The Villa ComplexSpecialCity of Tshwane5 Storeys1.573%
The Village Centre Business 1Mbombela3 Storeys0.6150%
Town Square Business 1Thaba Chweu6 Storeys390%
Waterglen Centre SpecialCity of Tshwane2 Storeys060%
Zambezi MallSpecialCity of Tshwane3 Storeys0.440%

Residential Development Asset List:

NoDEVELOPMENT NAMEPROVINCEHECTARESZONED UNITS2018 AFS VALUE2018 MARKET VALUE
1Berg & Dal Residential EstateGauteng7277740 789 182.00155 400 000.00
2Countryview Residential DevelopmentGauteng219043 167 261.0038 000 000.00
3Mont Rouge Residential EstateNorth-West9.619825 000 00039 600 000.00
4Polokwane Mixed-Use DevelopmentLimpopo6472128 115 445.00144 200 000.00
5Steenbokpan Mixed-Use DevelopmentLimpopo128.202 050 000.00-
6Stonewood Country EstateMpumalanga20.37525 000 000.0015 000 000.00
7Theresapark Residential DevelopmentGauteng6.957840 710 000.00115 600 000.00
8Waterfall Residential EstateNorth-West38.3206856 760 000.00413 600 000.00
341.34 607261 591 888.00921 400 000.00

Operational efficiencies

The Group also actively manages running costs in a number of ways. The two highest external costs associated with commercial property management are municipal rates and taxes, which are linked to a property’s municipal valuation, and electricity.

While consistently working to enhance the inherent value of its portfolio, parallel processes aim to monitor and rectify each asset’s municipal valuation, thus reducing the associated rates costs.

With regard to electricity, the period 2000 to 2016 shows an increased cost from around R5.24/m2 to R33.34/m2 – a staggering hike that could impact on tenants’ payment profiles and knock-on to the Group’s cash-flow. To mitigate, Nova’s commercial property assets have been retro-fitted with solar installations, energy-efficient lighting and pre-paid electricity meters, while generators are in place to reduce the impact on both tenants and consumers in the event of power outages; Rainwater catchers are utilised to reduce day-to-day water consumption and as a buffer against potential shortages. In this way, tenants are assured that their leases remain affordable and that consumers’ shopping experiences remain reliable, convenient and enjoyable.

A residential view

In its residential portfolio, the Group concentrates on eight geographical hubs, all selected for their development and growth potential. Within this, a focus on three models – build-to-sell, re-zoning, and rental stock – aims to unlock long-term bottom-line value from this primarily land-based asset portfolio. The planning and zoning aspects are the product of years-long in-house planning processes, while development and building are facilitated by joint venture partnerships. The Group’s residential projects are in various stages of development, and will continue depending on market demand and the securing of appropriate funding.