Du Val Group ….IPO on way?

[winner69]

Du Val Group hinting at an IPO

Investment in a building developer could attract a few here. The company said it intends to deliver 1,000 residential units annually, specialising in “brownfield regeneration”, terraced housing and apartment schemes.

Market value would be more than Turners the article says

Du Val dangles NZX listing, seeks debt swap for equity
https://businessdesk.co.nz/article/property/du-val-dangles-nzx-listing-seeks-debt-swap-for-equity
Possibly paywalled

[SPC]

You know how this goes.

[Rawz]

Would never ever invest in this company

[Balance]

Can't wait!

https://media.businessdesk.co.nz/file/c_fill,w_700,q_100/Kenyon-and-Charlotte-with-his-Phantom-rolls-royce-d.webp

[mike2020]

outstanding cash distributions? spent on the roller?

[thedrunkfish]

Lets play "Who wants to be a bagholder"

[troyvdh]

woof woof gnarl.

[Balance]

Du Val Group hinting at an IPO

Investment in a building developer could attract a few here. The company said it intends to deliver 1,000 residential units annually, specialising in “brownfield regeneration”, terraced housing and apartment schemes.


This is the brownfield regeneration?

https://kjcdn.gumlet.io/media/81234/cow-dung.jpg

[Habits]

Kenyon Clarke looks like the type who would pose doing stretches on the edge, then falls into the pool

Edit: maybe a bit mean to say, apology

[nztx]

Where is the massive hoard of conch shells coming from - to pay for this 1000 motherload of units ?

A series of loans over the shadows of the Roller captured at 1/4 hourly intervals ? ;)

These sort of things don't come cheap or easy to throw up .. let alone in a quantity or even a hundred
at a time - do they ?

Just in the last two years, others have stumbled & fallen badly in the same game plan on lesser numbers
chalked up for the 'to complete' list on hitting the slightest of ripples in the tarseal


How many out there with the readies in hand for these things to easily fly off the Salesperson's plate like clockwork down a slide in tightening times likely ahead, with banks are pulling lending ropes in and likely growing unemployment approaching ?


"Forgo any returns for years" for any dissenting among those already captured .. sounds really encouraging ;)

Could the clear message be that they may be Du Du Done otherwise while the head cherangs merrily sail around in their Roller across the Estate ?


What marvellous revelations for an outfit potentially looking at throwing itself onto NZX :)


Could be worth following for Entertainment Value, if nothing more :)


Does the Roller go with the Show, or is it leased for promotional purposes and has to be returned ? :)


For those who don't have a taste for Developing the Dirt into many boxes .. there's even a Fashion Design Service company, a Wealth Company and a Fitness Company sitting within the Group ..

[nztx]

Things appear to be going swimmingly well submarine style for some in the Property Development sector

Take for example this one -

https://www.nzherald.co.nz/business/house-builder-compass-homes-franklin-stops-trading/T4VLI5ZKD5ETXFWY54FC5ZNPPE/

House-builder Compass Homes Franklin stops trading


And that's in one of the better growth areas for the sector - Article may be paywalled


A fairly good run down of some of the issues the sector faces, including scarcity of sales in this case.

[thedrunkfish]

https://newsroom.co.nz/2024/02/09/work-stops-on-big-du-val-site-as-contractors-threaten-legal-action/

Wonder if it will get to IPO?

[Sideshow Bob]

https://newsroom.co.nz/2024/02/09/work-stops-on-big-du-val-site-as-contractors-threaten-legal-action/

Wonder if it will get to IPO?

Article mentions they “self produced a reality tv show about their life and work’.

If not enough red flags already, massive one there!!

[Habits]

Article mentions they “self produced a reality tv show about their life and work’.

If not enough red flags already, massive one there!!

I would love to see this show be screened, but not sure if it's reality or comedy

[etrader]

Definitely all smokes and mirrors where they rented a house in arrowtown short term to stage that plus they were renting in Auckland also to stage that side.

This ipo is just converting debt they can’t repay to shares which will be hard to move

Another mid level property business who live of cashflow to have a show lifestyle while investors bleed

Wouldn’t touch it with a barge pole


I would love to see this show be screened, but not sure if it's reality or comedy

[SPC]

IPO def. Investors Probably Outsmarted
Alt: Invariably Poor Outcome

[ValueNZ]

IPO def. Investors Probably Outsmarted
Alt: Invariably Poor Outcome

It's Probably Overpriced

[GTM 3442]

So as the pool of listed companies slowly shrinks, is this the future for the NZX?

[Sideshow Bob]

https://businessdesk.co.nz/article/property/du-val-group-was-technically-insolvent-last-september?utm_source=7am+Headlines+from+BusinessDe sk&utm_campaign=0bfdaae461-7am+Headlines&utm_medium=email&utm_term=0_617c2ef34a-0bfdaae461-402467359

(Paywalled)

Saying they were technically insolvent last September.

[nztx]

https://businessdesk.co.nz/article/property/du-val-group-was-technically-insolvent-last-september?utm_source=7am+Headlines+from+BusinessDe sk&utm_campaign=0bfdaae461-7am+Headlines&utm_medium=email&utm_term=0_617c2ef34a-0bfdaae461-402467359

(Paywalled)

Saying they were technically insolvent last September.


That's after this:


Feb 2023:

https://businessdesk.co.nz/article/property/du-val-converts-mortgage-fund-ahead-of-nzx-float

Du Val converts mortgage fund ahead of NZX float


and this:

Mar 2023:

https://businessdesk.co.nz/article/finance/for-du-val-protecting-investors-also-means-keeping-them-quiet

For Du Val, 'protecting investors' also means keeping them quiet


and this:

28 Mar 2023:

https://businessdesk.co.nz/article/property/shell-shocked-du-val-investors-ponder-options

Shell shocked Du Val investors ponder options


(All paywalled)

But past indications on just how "Other Peoples Money" has fared ;)

[thedrunkfish]

This isnt his first rodeo either. https://www.stuff.co.nz/waikato-times/business/3142399/Developers-luxury-home-in-forced-sale

[troyvdh]

What really saddens me is how many people continue to entertain this dog poo entity.
Its gone burger ...I lost a lot through the 80s !
RJI cost me 30k.
I can understand why people avoid the SM...

[nztx]

When preparing for listing - keeping the cupboard clean & the china sparkling & tidy is prerequisite

With some outfits - it doesn't take too much digging to unearth reports of recent & past reports

How far is news of an earlier financial calamities, unpaid tradies screaming, investors getting screwed into a
corner .. while the bigwigs ponce around in a gleaming Rolls on pie in the sky aspirations as if nothing has
happened looking for dough to lever out of a spot .. heading into troubled times going to take things ? ;)

Money in da bank at north of 6% looks a pretty inviting option .. in current times looking ahead :)

[Grimy]

When preparing for listing - keeping the cupboard clean & the china sparkling & tidy is prerequisite

With some outfits - it doesn't take too much digging to unearth reports of recent & past reports

How far is news of an earlier financial calamities, unpaid tradies screaming, investors getting screwed into a
corner .. while the bigwigs ponce around in a gleaming Rolls on pie in the sky aspirations as if nothing has
happened looking for dough to lever out of a spot .. heading into troubled times going to take things ? ;)

Money in da bank at north of 6% looks a pretty inviting option .. in current times looking ahead :)
You've seen the Reddit comments too?..........

[troyvdh]

Actually....Who is ultimately responsible here...Why on earth do the regulatory authorities allow this to occur.....again.
I reckon Brian Gaynor ..bless him...would be greatly saddened that the SM again is well being ...sullied.

[nztx]

You've seen the Reddit comments too?..........


Comments on there too ? Must have a looksie..

[troyvdh]

nztx....With respect you are a legend....How old are you...good luck with the "looksie" cheers troy.

[nztx]

How is NZX Listing going down with the bundle of investors under ? -

https://www.nzherald.co.nz/business/du-val-group-was-technically-insolvent-last-september/X2HXIM5S75DD3INAYFOBUILEHE/


The offer is structured to try to force investors, who have had interest payments frozen since October 2022, to swap their outstanding loans to the company to shares, effectively moving debt into equity.

The Auckland property developer and non-deposit taker is offering 200 million $2 shares to convert lenders’ debt from investors in its mortgage and build-to-rent (BTR) funds to equity in a restructured Du Val Property Group.



The 83 investors in the mortgage fund had each put in at least $250,000, with several having invested much of their savings into the funds as a supposed safe haven, yielding a quarterly cash distribution at an annual interest rate of 10 per cent.



These poor suckers have been frozen out of their 10% Interest Income since Oct 2022, if the Article is correct

Trying to force them to convert into Shares instead ?


Sounds pretty bl**dy rough for those who might be reliant on Interest for Income, while the Top Brass float around in a luxury vehicle unaffected as if nothing has happened, painting up grandiose Pie in Sky portrayals of the future .. to try to drag in further Capital ;)


Why not organise the Float so they are FULLY paid out instead out of the proceeds ? or too difficult ? ;)

Fancy trying to talk potential NZX Float, but leaving this sort of nonsense on the table and thinking this bundle of investors might still like the ride and risk after being skrewed on how much Interest - which is then further locked in in additional % percentage ? ;)

Must be pretty desperate to want to Float things and to have to want to try force those Investors onboard as well ? What could possibly go wrong ? ;)


Why not just pay them out ? .. Offshore lenders not keen on the idea or not enough readies in Kitty to do that and pay out their frozen interest due .. and deal with the alleged unpaid tradies as well ? ;)

Or maybe it fair bu%%ers up the grandiose 'Build a Development Empire Plan' too badly ? ;)


Of course if the 'investors in "its mortgage and build-to-rent (BTR) funds" have had to suffer a freeze of their interest payments since Oct 2022 - then WTF is going on ?


Where's the dough going ? Are the satellite Funds solvent ? Is there a Shortfall to these Investors ? ;)

The property markets have had their best runs through to 2022 & likely further leaps ahead & this outfit should have reaped the fruits as well .. What all of a sudden happened to trigger the interest freeze to investors from Oct 2022 ?

Somewhere within the Empire - a fair stash of filthy lucre must have been made & it still must be looking at making a fair filthy pile more -- otherwise there wouldn't be grandiose future plans being thrown around, word of all the untold new developments, an NZX listing etc .. let's face it if it were the reverse scenario instead, then it would likely be curtains period and no-one would be flying around doing fancy photo shots, glitzy wheels .. Look at us shots - etc - a fair & reasonable stance isn't it ;)


How much is owed to the Investors satellite funds by the Company / Group ?


If there is bad news instore for the investors in the satellite funds, then why haven't Administrators / Receivers been put in place to protect the interests of those Investors ? ;)

[SPC]

Maybe the name should be Devour?

[troyvdh]

FFFFffffffffffffffffffffffffffffffffffffffffffffff fffffffffffffffffffffffffffffffffffffffffffffff

[nztx]

https://thelawassociation.nz/fma-hammers-du-val-group-investors-leak-to-media/

FMA hammers Du Val Group, investors leak to media


16.3.23



Reprimands from the Financial Markets Authority (FMA) are piling up against Du Val Group, while the embattled property developer scrambles to block disaffected investors from leaking to the media.

The regulator issued Du Val Capital Partners (DVCP), the general partner of the Du Val Mortgage Fund and Du Val Group, a formal warning last week for misleading investors about its suspension of cash distributions from the mortgage fund in January. In the FMA’s view, Du Val breached s 19 of the Financial Markets Conduct Act 2013.

Complaints were made to the FMA after the suspension. Investors had been told the fund would be wound up and the cash distributions converted into units at a 25% premium to be placed in a new company, pending a potential public listing on the NZ Stock Exchange or an alternate.

FMA executive director (response and enforcement) Paul Gregory says this was misleading as the payments were suspended because Du Val’s board could not approve cash distributions as it would leave the company unable to meet its other obligations. And, Gregory says, the proposal to convert cash distributions into units in the fund is not permitted under the terms of the limited partnership agreement governing the investment and investors were not obliged to accept that decision.

Du Val Capital Partners, in a brief statement, says it is disappointed the FMA has issued a public warning against the company for a direct communication made to a small group of investors. “The fund is closed and the communications have no relevance to the New Zealand public. Investors have received further communication to clarify statements that may have been misunderstood,” the statement said.

DVCP sold units under its mortgage fund to wholesale investors over the past two years at a minimum buy-in of $250,000. The units are backed by a portfolio of nine South Auckland apartment developments valued by Du Val at $750 million. The investment offered a fixed return of 10% per year, paid quarterly, equating to cash distributions of $2.5 million per quarter or $10 million per year. Most of the investors relied on the fund’s interest payments.

One elderly investor, who has $800,000 in the mortgage fund and leaked information to BusinessDesk, was this week reminded of his obligations by Du Val’s senior legal counsel Matthew Hawkes, who advised the investor to “keep all information relating to the business” confidential under the terms of the limited partnership agreement. Du Val says all investors are bound by non-disclosure agreements.

Hawkes told the investor the company required him to remedy the ‘breach’ immediately by, amongst other things, destroying confidential information leaked to BusinessDesk. Requests to exit the fund have got investors nowhere. In further leaked information to BusinessDesk, Du Val general manager of investor relations Glen Williams told investors the company continues to priortise funds for the completion of projects and the protection of investor funds. “Redemptions will be considered as part of the upcoming liquidity events on the terms of the limited partnership agreement,” he said. No details of the liquidity events have been given.


More at Link



https://www.interest.co.nz/investing/120258/financial-markets-authority-issues-formal-warning-du-val-group-misleading

Financial Markets Authority issues formal warning to Du Val group for misleading investors over why it suspended cash distributions


23.3.2023



The Financial Markets Authority (FMA) has issued property development firm Du Val Capital Partners with a formal warning for misleading investors over the suspension of cash distributions.

Du Val halted cash payments from its Mortgage Fund in January this year, telling investors it was looking to restructure the fund ahead of a potential listing on the NZX or another stock market.

Cash distributions promised to investors would instead be converted into units in the fund at a 25% premium.

The FMA said investors were told the cash payments had been suspended in the context of this restructure. But this was misleading, as it was actually because paying out to investors would leave the company unable to pay other liabilities.

In essence, the regulator said Du Val didn’t have enough cash to pay investors and all its other costs — and so had suspended distributions.

Paul Gregory, the FMA’s executive director of response and enforcement, said investors in Du Val’s Mortgage Fund had not been given enough information to properly accept or reject the proposal.

“In particular, investors were misled about the reason Du Val has suspended the prominently advertised cash distributions, which was because Du Val’s Board could not approve a cash distribution which would leave the fund unable to meet its other obligations.”

Also, investors were not obligated to accept the decision, as the proposal was not permitted under the terms of the limited partnership agreement governing the investment.

The regulator said Du Val’s statements may have been misleading or deceptive, because investors were not informed of the underlying reason the board had suspended and capitalised distributions.

[nztx]

https://www.stuff.co.nz/business/300827109/du-val-issued-with-formal-warning-over-misleading-statements

Du Val issued with formal warning over 'misleading' statements


10.3.2023



Du Val Capital Partners has been issued with a warning over what the Financial Markets Authority says are misleading or deceptive statements made to investors in the Du Val Mortgage Fund.

Du Val is a property development company. In recent years, it has offered investors a 10% return a year in its mortgage fund, with a $250,000 minimum investment.

But investors have since had their money locked in while plans were finalised for a listing on the stock exchange.

The Financial Markets Authority said Du Val Capital Partners and Du Val Group might have breached the Financial Markets Conduct Act by engaging in misleading or deceptive conduct, in its communication about that decision.

[nztx]

https://www.fma.govt.nz/news/all-releases/media-releases/fma-warns-du-val-capital-partners-limited-over-misleading-or-deceptive-statements-to-investors-in-the-du-val-mortgage-fund/

FMA warns Du Val Capital Partners Limited over misleading or deceptive statements to investors in the Du Val Mortgage Fund


10.3.2023


FMA Release at link

[nztx]

https://www.nzherald.co.nz/business/du-val-negotiating-to-resume-investor-payments/MDRJ3QOCQ5EQTAKR2VZQXQLBWY/

Du Val negotiating to resume investor payments


12.4.2023




Residential property developer Du Val Capital Partners is working to reassure investors that its build-to-rent fund has adequate reserves to meet its obligations, BusinessDesk reports.

Du Val’s manager of investor relations, Ben Good, said that directors are now focusing on “financial modelling” to ensure that sufficient reserves are maintained to meet obligations.

Last month the Financial Markets Authority warned the company about misleading and deceptive statements to investors in its mortgage fund.

The regulator said investors may have been given a misleading impression of the reasons for Du Val suspending cash distributions on the fund and proposing instead to convert cash distributions into units, pending a potential public listing.

[nztx]

And so - Mortgage Fund Investors appear to be continuing to suffer an Interest Payout freeze


The matter of repayment or otherwise of Mortgage Fund Investors continues to remain outstanding


The FMA may be be continuing to watch in respect of the Mortgage Fund Investors

[nztx]

https://www.stuff.co.nz/waikato-times/news/745739/Bust-firms-owe-50m

Bust firms owe $50m


31 Jan 2009



A Hamilton property developer who sources say owes more than $50 million to the Bank of Scotland International is adamant he will not "roll over and die" over the debts.

The Waikato Times revealed yesterday that mother and son Jenepher and Kenyon Clarke, developers of many Hamilton studio apartment properties, had at least 12 of their companies placed in receivership on Friday.

Many of the units they have built and rent are well tenanted - with CTC trainee pilots and hospital staff living in both the Peachgrove Rd and Knox St apartment owned by their companies.

The Waikato Times spoke to Mr Clarke yesterday at the Newstead house he shares with his mother. Mr Clarke said that all the businesses were still running and he was working with his advisers to recover the situation.

"I think the situation is retrievable or else I might as well f--- off or roll over and die."

Mr Clarke has more than 27 companies listed with the Companies Office and 12 were placed in receivership last week under the instructions of the Bank of Scotland. It is understood that Mr Clarke was several hundred thousand dollars behind in interest payments.

Mrs Clarke's silver Jaguar and Mr Clarke's black Range Rover were in the driveway, but a black Ferrari, which the Times understands is in the midst of being repossessed, was not.

[nztx]

https://www.nzherald.co.nz/entertainment/spy-high-roller-property-developers-head-for-singapore-and-fiji/6WYUVS6TK4DIM6FLP4WYUMQYMA/

Spy: High-roller property developers head for Singapore and Fiji


7 May 2022


One of New Zealand's most successful high-flying property couples have left Auckland to set up their global headquarters in Singapore and eventually settle their family in a luxury gated community in Fiji.

Kenyon Clarke, CEO of property company Du Val Group, and wife Charlotte, who is the company's COO, packed up their clifftop Remuera home early this week and headed for Singapore to launch their Du Val Group International strategy.

The couple are known for splashing the cash on luxury lodges, expensive cars (including a Rolls-Royce Phantom,) private jets and chopper rides, not to mention creating a property developing reality show last year yet to be screened.

According to its website, the Du Val Group is valued at $750 million and the Clarkes don't plan to stop there. Plans include property development in New Zealand, Australia and the UK, with Singapore as the hub for the operation.

The couple, now searching for Singapore office space, plan to relocate Du Val's head office there within the next 11 months. Several of the company's key executives will also relocate to Singapore. The Clarkes tell Spy that although they will no longer live in New Zealand, they consider themselves very much Kiwis and hope to take a little Kiwi ingenuity to the rest of the world.

Du Val's business in New Zealand will remain a core focus for the group, they say, run by a management team in Auckland, who will routinely visit the Singaporean head office to keep business operations running seamlessly across the two markets.

[nztx]

https://newsroom.co.nz/2024/02/09/work-stops-on-big-du-val-site-as-contractors-threaten-legal-action/

Work stops on big Du Val site as contractors threaten legal action


9 Feb 2024

[whatsup]

https://newsroom.co.nz/2024/02/09/work-stops-on-big-du-val-site-as-contractors-threaten-legal-action/

Work stops on big Du Val site as contractors threaten legal action


9 Feb 2024

IMHO this is a really sad situation for a N Z home builder, we , N Z inc need risk takers who are willing and able to build what is necessary to help home other N Zers, I truly hope that this does not finish in tears.
Yes they look like a power couple and possible should have kept their heads down and not believe their own p r but that not a reason why we should want ill will of them. There is nothing wrong with success surely we need that and the people who have the courage to try and keep trying again and again.

As the great Martin crow said , " only weeds grow under tall poppies " !!.

[malreid]

This is already finishing in tears for investors and unfortunately that seems to be a pattern with this 'internally focused management group' (that's as nicely as I can phrase it without appearing personal...)

[Aaron]

Article in the herald this morning, maybe business desk as I cannot see it online. Interesting that they felt "market value" rather than "cost" was the better way to value stock on hand.

Are these the sort of businesses easy money and high immigration are creating?

Damn missed out on a listing but at least their bondholders get the chance to turn their bonds into worthless shares.

[nztx]

Article in the herald this morning, maybe business desk as I cannot see it online. Interesting that they felt "market value" rather than "cost" was the better way to value stock on hand.

Are these the sort of businesses easy money and high immigration are creating?

Damn missed out on a listing but at least their bondholders get the chance to turn their bonds into worthless shares.


A two edged sword valuing at Market value - recognises losses but can inflate & recognise gains ahead of them moving / selling for those with a margin in the making- doesn't sound very conservative booking gains ahead of sale tho ;)

If this outfit were really making piles then would there be a looming issue in the background with investors having their ears nailed to the wall & locked in ? ;)

[troyvdh]

Woof.....gnarl

[nztx]

Ooops .. and Chris Lee has made mention of the said business model now :)

[nztx]

https://businessdesk.co.nz/article/property/du-val-investors-aim-to-liquidate-mortgage-fund

Du Val investors aim to liquidate mortgage fund


That could put the grandiose plans fair & squarely in the Du Du for good ;)

[nztx]

https://www.stuff.co.nz/a/nz-news/350219409/du-vals-high-flying-owners-charlotte-kenyon-clarke-front-criticise

Du Val’s high-flying owners Charlotte, Kenyon Clarke front up to criticism


Meanwhile Lawyers are reportedly at work moving towards getting Corporate Undertakers with Liquidation shears in hand chasing the Mortgage Fund ;)

What could possibly go wrong ? ;)