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DAWIE Roodt of Efficient has confirmed that he and his chairperson, Steve Booysen, are not yet directors of any of Sharemax's 39 property syndications.
But they are eager to become so, especially if the investors in the various syndications are prepared to join hands with them. One of the problems, however, is that the transaction in which Bonatla's Niki Vontas bought all the properties has not yet been cancelled.
I spoke to Dawie on Wednesday, and he was quite open about spelling out the dream that he and Steve have, and their role in the future of the Sharemax syndications.
They would like to serve as directors on the boards of each of the 39 syndications, with the investors then nominating three more directors for each syndication. The big shots in Sharemax, like Andre Brand, tend to keep out of things, but Sharemax's administration and financial division are still being used for the collection of rental and the payment of interest to investors.
Dawie then also aired the - in my view - very reckless and foolish dream that if the syndications' affairs are eventually put in order, there could one day even be the possibility of a listing.
Soft-soaping the old folks?
My lesson (and perhaps this is one that Dawie and Steve still have to learn) is that you never use the word "listing" in the presence of aggressive financial advisers - or are they simply marketers? That gives them the opening to once again soft-soap the elderly with all kinds of idle promises.
Secondly, it looks as if Dawie and Steve have also not yet worked particularly carefully through the portfolio of 39 syndications. Nor poor Niki Vontas. Dawie and Steve simply because they have not yet focused on the portfolio, and Vontas because he has not been able to gain access to proper financial statements, and especially rental registers, for the properties.
The list of the 39 syndications was published in Bonatla's announcement. If you are one of the fortunates to have downloaded one of the latest prospectuses of a property syndication from the Sharemax website, you will also have the list of the properties' valuations.
I say "lucky ones", because for the past two weeks the prospectuses have no longer been available on Sharemax's website.
According to the list of syndications given in the prospectuses, the total extent of the investments by the public or the value of the total prospectuses issued is R4.94bn. That's also approximately the figure mentioned by Bonatla in its offer.
In the course of the past few years, I have had the opportunity to visit quite a number of the syndications, especially the two big ones, Zambezi Mall and The Villa.
Niki has already indicated that he has no interest in these two, and the truth for Steve and Dawie is that these two malls are no go areas. They don't need new directors, rather quality tenants and especially cash - a lot of it. Deduct R2.5bn from the R4.94bn portfolio.
Bonatla's Niki is not interested in the approximately 16 large syndications in the portfolio. This includes things like the loan of R61m, if not more, for The Bay, another golf estate dream next to Hartebeespoort Dam. The shares of Pinnacle Point Group [JSE:PNG], the owner of two of the country's finest golf courses, are already trading at only 1c and are waiting patiently for the final death blow.
In fact, it's impractical to work through the Sharemax syndication portfolio and, in terms of Niki's plan, buy with paper whatever is not suitable for listing, as in Steve and Dawie's dream. It's easier to look at what may be suitable, because there's less of it.
Occupancies: kindly assist if you can
Without the benefit of having visited all the properties, and of course without the benefit of any financial statements, I was only able to find five syndication properties with a value of R100m or more that would be suited to Steve and Dawie's rescue and listing dream, or for Niki to take over.
Readers who know these centres would be doing these three gents a great service if they could provide estimates about the current occupancies of the centres, thereby making a visit unnecessary.
The table shows the original syndication value and my estimates of the present value, if a discounting rate of 12%/year is used. Please assist if you have further insights.
Syndication Book value (Rm) Value at 12% discount (Rm)
Witbank Centre 100 60
Flora Centre 118 60
Waterglen Pta 80 60
Benoni Hyper 102 70
Rivonia Square 258 150
Liberty Mall 200 100
Total 858 500
Steve and Dawie, these assets are too low for listing dreams. If you want to include the other assets, especially the growth assets like The Bay, investors will skin you alive after listing.
Niki, there are only R400m in assets you should look at. If your deal is still an all-or-nothing one, then the nothing is a very, very good option.
- Fin24.com
But they are eager to become so, especially if the investors in the various syndications are prepared to join hands with them. One of the problems, however, is that the transaction in which Bonatla's Niki Vontas bought all the properties has not yet been cancelled.
I spoke to Dawie on Wednesday, and he was quite open about spelling out the dream that he and Steve have, and their role in the future of the Sharemax syndications.
They would like to serve as directors on the boards of each of the 39 syndications, with the investors then nominating three more directors for each syndication. The big shots in Sharemax, like Andre Brand, tend to keep out of things, but Sharemax's administration and financial division are still being used for the collection of rental and the payment of interest to investors.
Dawie then also aired the - in my view - very reckless and foolish dream that if the syndications' affairs are eventually put in order, there could one day even be the possibility of a listing.
Soft-soaping the old folks?
My lesson (and perhaps this is one that Dawie and Steve still have to learn) is that you never use the word "listing" in the presence of aggressive financial advisers - or are they simply marketers? That gives them the opening to once again soft-soap the elderly with all kinds of idle promises.
Secondly, it looks as if Dawie and Steve have also not yet worked particularly carefully through the portfolio of 39 syndications. Nor poor Niki Vontas. Dawie and Steve simply because they have not yet focused on the portfolio, and Vontas because he has not been able to gain access to proper financial statements, and especially rental registers, for the properties.
The list of the 39 syndications was published in Bonatla's announcement. If you are one of the fortunates to have downloaded one of the latest prospectuses of a property syndication from the Sharemax website, you will also have the list of the properties' valuations.
I say "lucky ones", because for the past two weeks the prospectuses have no longer been available on Sharemax's website.
According to the list of syndications given in the prospectuses, the total extent of the investments by the public or the value of the total prospectuses issued is R4.94bn. That's also approximately the figure mentioned by Bonatla in its offer.
In the course of the past few years, I have had the opportunity to visit quite a number of the syndications, especially the two big ones, Zambezi Mall and The Villa.
Niki has already indicated that he has no interest in these two, and the truth for Steve and Dawie is that these two malls are no go areas. They don't need new directors, rather quality tenants and especially cash - a lot of it. Deduct R2.5bn from the R4.94bn portfolio.
Bonatla's Niki is not interested in the approximately 16 large syndications in the portfolio. This includes things like the loan of R61m, if not more, for The Bay, another golf estate dream next to Hartebeespoort Dam. The shares of Pinnacle Point Group [JSE:PNG], the owner of two of the country's finest golf courses, are already trading at only 1c and are waiting patiently for the final death blow.
In fact, it's impractical to work through the Sharemax syndication portfolio and, in terms of Niki's plan, buy with paper whatever is not suitable for listing, as in Steve and Dawie's dream. It's easier to look at what may be suitable, because there's less of it.
Occupancies: kindly assist if you can
Without the benefit of having visited all the properties, and of course without the benefit of any financial statements, I was only able to find five syndication properties with a value of R100m or more that would be suited to Steve and Dawie's rescue and listing dream, or for Niki to take over.
Readers who know these centres would be doing these three gents a great service if they could provide estimates about the current occupancies of the centres, thereby making a visit unnecessary.
The table shows the original syndication value and my estimates of the present value, if a discounting rate of 12%/year is used. Please assist if you have further insights.
Syndication Book value (Rm) Value at 12% discount (Rm)
Witbank Centre 100 60
Flora Centre 118 60
Waterglen Pta 80 60
Benoni Hyper 102 70
Rivonia Square 258 150
Liberty Mall 200 100
Total 858 500
Steve and Dawie, these assets are too low for listing dreams. If you want to include the other assets, especially the growth assets like The Bay, investors will skin you alive after listing.
Niki, there are only R400m in assets you should look at. If your deal is still an all-or-nothing one, then the nothing is a very, very good option.
- Fin24.com
