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 contracted property management and leasing resources.

These support functions stem from the company Frontier Accounting and Secretarial Services Pty Ltd (Frontier) which is 100% owned by Nova Properties, and is staffed by highly skilled and experienced professionals.

This support company works 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.

External contracted service providers in turn provide 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, these service providers focus 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 and external service providers 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.

The objectives to be reached by the end of Q1 2021 are as follows:

  • management – Board is 25% black;
  • to train and upskill black entrepreneurs entering the property sector – Nova Properties will consider entering 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 DESCRIPTIONADDRESS GLA VALUE 2019
1Amogela Mall (Choppies)Community Centre6 Mooi Str, Welkom 15 991 27 000 000
2Athlone Park (Pick 'n Pay)Neighbourhood Centre26-30 Price Str, Athlone Park, Amanzimtoti 6 433 28 600 000
3Carletonville Centre (Shoprite)Neighbourhood CentreOnyx Ave, Carletonville 9 961 21 600 000
4Carnival CentreNeighbourhood CentreErf 1294, Dalpark x 11, Brakpan 3 105 16 700 000
5Cold Creek Developments Farm Tweefontein No 915, Polokwane, Capricorn 114 634 56 109 235
6Courtside Centre (Spar)Neighbourhood Centre & OfficesCnr Kaapschehoop & N4, West Acres, Nelspruit 6 716 77 090 000
7Del Judor Mall (Checkers Hyper)Community Centre & OfficesCnr Watermeyer & Stevenson Rd, Witbank 21 890 182 395 744
8Flora Centre (Pick 'n Pay)Neighbourhood Centre & OfficesCnr Conrad & Ondekkers Rd, Florida North 23 727 174 958 600
9The Villa ComplexMega Mixed-Use ComplexThe Villebois Mareuil Drive, Erasmuskloof, Pretoria 88 693 848 000 000
10The Village Centre (Spar)Neighbourhood Centre & Offices49 Ehmke Str, Nelspruit Central 5 174 45 425 000
11Waterglen Centre (Pick 'n Pay)Community Centre & OfficesGarsfontein Rd, Waterglen, Pretoria 12 451 232 464 000
12Zambezi MallSmall Regional MallZambezi Rd, Derdepoort, Pretoria 31 000 480 000 000
      
     339 776 2 190 342 579

.

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
6Del Judor Mall (Checkers Hyper)2067012202189020%96%36551137Preparing for redevelopment
7Flora Centre (Pick 'n Pay)2022735002372716%20%4836700Require redevelopment
8The Villa Complex886930886930%0%00Under development
9The Village Centre (Spar)24512723517414%32%3471829Require redevelopment
10Waterglen Centre (Pick 'n Pay)1054119101245122%80%7891424Busy with redevelopment
11Zambezi Mall310000310000%0%00Require further redevelopment
TOTALS21431510827225142  284545156Vacancy 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%
Del Judor MallBusiness 2Emalahleni6 Storeys2Ground-90%; Other-75%
Flora Centre Business 1Joburgh10 Storeys150%
The Villa ComplexSpecialCity of Tshwane5 Storeys1.573%
The Village Centre Business 1Mbombela3 Storeys0.6150%
Waterglen Centre SpecialCity of Tshwane2 Storeys060%
Zambezi MallSpecialCity of Tshwane3 Storeys0.440%

 

Residential Development Asset List:

NoDEVELOPMENT NAMEPROVINCEHECTARESUNITS2019 AFS VALUE2019 MARKET VALUE
1Berg & Dal Residential EstateGauteng72777 41 215 762 155 400 000
2Countryview Residential DevelopmentGauteng2190 42 870 747 38 000 000
3Mont Rouge Residential EstateNorth-West9.6198 28 064 658 39 600 000
4Polokwane Mixed-Use DevelopmentLimpopo64721 28 115 445 144 200 000
5Steenbokpan Mixed-Use DevelopmentLimpopo128.20 2 115 000 -
6Stonewood Country EstateMpumalanga20.375 24 940 000 15 000 000
7Theresapark Residential DevelopmentGauteng6.9578 41 470 000 115 600 000
8Waterfall Residential EstateNorth-West38.32068 51 975 000 413 600 000
    341 4 607 260 766 612 921 400 000

Operational efficiencies

The Group also actively manages running costs in a number of ways. The two biggest cost drivers 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 2019 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.