(4 minutes read)
· Delta Property Fund’s CEO Sandile Nomvete, who founded the group over a decade ago, has resigned with immediate effect. Delta Property Fund is listed on Johannesburg Stock Exchange (JSE) in 2012
· The immediate reason Nomvete’s exit seems to be an unsuccessful attempt to merge Delta with fellow black-empowered property fund Rebosis over the past year
· The group’s biggest single shareholder, Cornwall Crescent did not favor the merger and decided to “chart a new direction” for the group
Delta Property Fund’s CEO Sandile Nomvete, who founded the group over a decade ago, has resigned with immediate effect. Delta Property Fund was listed on Johannesburg Stock Exchange (JSE) in 2012.
Resignation of Delta Property’s CEO Nomvete and CFO, Shaneel Maharaj along with group’s chief operations officer Otis Tshabalala, who resigned on July 2, are being debated in corporate circles. Many are raising questions about the mass walkout.
The immediate reason for Nomvete’s exit seems to be an unsuccessful attempt to merge Delta with fellow black-empowered property fund Rebosis over the past year. The group’s biggest single shareholder, Cornwall Crescent did not favor the merger and decided to “chart a new direction” for the group. It was widely reported that Cornwall Crescent was against the proposed merger with Rebosis.
The group has been consistently doing badly and lost over 94% of its market cap over the last three years. The current non-executive director on the board, Bongi Masinga, has been appointed as acting CEO and the interim CFO is Marelise de Lange who is currently an independent non-executive director. Shortly, Delta’s current independent non-executive chairperson JB Magwaza, is set to retire from the group’s board. Delta has come under serious pressure over the last year compounded by the economic impact of the Covid-19 pandemic on the realty sector.
