Large shopping mall in Pretoria deserted

The Villa shopping centre in Pretoria, often called the ‘Ghost Mall’, has been abandoned and in legal limbo for over fifteen years. Now, one of its partial owners is in negotiations to buy the rest of the property.

Located at the corner of Delmas and De Villebois roads in Moreleta Park, The Villa, a R3.5 billion project, has stood abandoned for 15 years with no progress. 

It was one of the ambitious projects initiated by Sharemax Investments, a company founded in 1999 by Willie Botha. 

Sharemax, once a major player in South Africa’s unlisted property investment sector, allowed retail investors to gain access to prime commercial real estate by pooling funds and acquiring stakes in shopping centres. 

While the investment model seemed promising, the South African Reserve Bank (SARB) determined in 2010 that Sharemax’s funding practices violated the Bank’s Act. 

As a result, the company was ordered to repay investors, causing Sharemax to collapse and leaving investors with significant losses. 

One of the casualties of this collapse was The Villa, which was 75% complete when the company failed.

Some accused the Reserve Bank of triggering the collapse, while others, like former ombud Noluntu Bam, likened certain Sharemax projects to a Ponzi scheme. 

The Hawks investigated allegations that Sharemax committed fraud and whether it operated a pyramid or Ponzi scheme.

However, Sharemax attorney Eckaard Le Roux denied allegations that Sharemax’s property syndication schemes were Ponzis.

The Companies and Intellectual Property Commission (CIPC) also investigated the matter but has yet to release any findings.

Therefore, despite numerous investigations and denials from Sharemax’s legal team, the issue remains unresolved.

Prior to Sharemax’s collapse, The Villa was touted to become one of South Africa’s largest shopping centres, competing with malls like Menlyn Park and Mall of Africa. 

Below is an image of what the mall was supposed to look like once construction was completed.

The project attracted R1.5 billion in investor funding and was designed to house over 300 tenants.

Construction started in January 2009 and was anticipated to reach practical completion at the end of August 2011.

The Villa Mall was set to provide retail space for over 300 tenants with 90,000 square meters of retail space.

The precinct would also feature 16,000 square meters of office space and around 5,000 square meters of lifestyle space.

The shopping centre was also set to be one of the most advanced in environmental initiatives and being green.

However, despite construction being so close to completion, efforts to revive the project have failed, and ongoing litigation has left the mall in limbo. 

The community has repeatedly voiced its frustration over the derelict structure, which many have described as an eyesore.

In 2011, Capicol CEO Paul Kyriacou said that developing The Villa shopping centre would cost between R700 million and R800 million.

However, legal entanglements have prevented any resolution, leaving the mall empty and unfinished.

Moneyweb reported in May 2023 that Villa Retail Park Investments had made an offer to acquire The Villa.

Villa Retail Park Investments is controlled by the Nova Property Group, the rescue vehicle of the failed Sharemax property syndication schemes. According to Moneyweb, the company plans to complete the project.

“It believes this will extract the inherent value of the development as originally envisaged,” the publication reported.

Nova Property Group’s executive chairman, Connie Myburgh, told Daily Investor that Villa Retail Park Investments owns a 30% undivided share of the Villa Mall.

Myburgh explained that the company has the right to obtain a transfer of a further 50% undivided share and is in negotiations to acquire the remaining 20% undivided share.

“No offer was made by Villa Retail to acquire the Villa Mall,” he said.

What The Villa looks like today