Potential resurrection of East “Ghost Mall” surfaces
“Since they stopped building [Ghost Mall] in 2010. It has been a constant source of concern as a security risk to neighbouring residents.”
The abandoned Sharemax “ghost mall” on the corner of De Villebois Mareuil Drive and Delmas Road in Pretoria east has been thrown a possible R200-million lifeline that could bring it back from the dead.
This was after an investment company offered to buy the unfinished mall – if it can secure financing for the deal, that is.
At the time of going to publication, it was however unclear what plans the company had for the property which has been left unfinished and empty for more than a decade now.
Villa Retail Park Investments (Pty) Ltd. director Connie Myburgh is at the helm of the proposed purchase plan.
Their plan details how Villa Retail offered to purchase the derelict mall, depending on whether it can secure financing.
The proposed deal is to Thumos Properties 1 (Pty) Ltd, formerly known as Capicol 1 (Pty) Ltd).
Talks have been ongoing since March 2023.
Thumos 1 has been placed in business rescue with effect from March 15, 2021.
BID IN PLACE TO PURCHASE THE GHOST MALL
Villa Retail will purchase the site in a bid to obtain ownership of all moveable items on, inside and relating to the property such as lifts, escalators, air-conditioning and building materials.
The deal also proposes that Villa contribute R20-million to rates and taxes owed to the Tshwane municipality.
Other proposals include that Villa Retail will abandon its claim for payment of an amount of more than R1.3-billion against Thumos 1.
Villa Retail will also pay the outstanding bulk contribution costs regarding the property to the Tshwane municipality, estimated at R100-million.
Should the deal not go through, the site could potentially be auctioned.
According to the proposed plan, Villa Retail will have the sole right to request an amount higher than R300-million but lower than R700-million for the auction phase.
This is not the first attempt to resurrect the R3.5-billion mall, on which work was halted in 2010 after the developer, Thumos 1, ran into funding problems.
The mall has since been embattled in lengthy legal wrangles.
GHOST MALL REMAINS AN EYESORE IN AREA
Local ward councillor Daryl Johnston told Rekord the unfinished mall remained an eyesore in the Wingate Park area.
“Since 2010 it has been a constant source of concern as a security risk to neighbouring residents.”
Johnston believed the facility should have brought much-needed upgrades to road infrastructure including the widening of De Villebois Drive and Delmas Road in addition to upgrades to traffic signals as part of development plans.
He said, however, due to the legal wrangles the Tshwane metro had to allow legal matters to conclude.
“Unfortunately it isn’t a municipal issue and we have to wait for these processes to unfold. Fortunately, recently there has been some progress in the business rescue process.”
In 2019, the development of the mall was considered to be at an advanced stage as a potential investor aimed to complete the eyesore.
The mall was intended to be an upmarket retail centre and give centres such as the likes of Sandton City and Menlyn Park shopping centres a run for their money.
LEGAL BATTLE MEANT MALL COULD NOT BE COMPLETED
In 2021, construction company GD Irons took mall owners Thumos Properties to court over R500-million in outstanding fees.
According to the court papers, it was stated that the mall’s owners were given R2.9-billion by an investment company in 2009 for the construction of the mall and a year later the funds dried up.
“In 2010, the project ran into funding issues and funding dried up. Although there were contractors on-site because there was an occupation deadline, there was no funding with which to complete the construction,” the court papers read.
The funding problems were attributed to “challenges” the mall owners had with the investment company, Brookfield Investments.
Since then, GD Irons tried to recoup outstanding amounts and previously launched an application for liquidation against the mall owners in an attempt to get the money but failed.
The Gauteng High Court in Pretoria recently delivered a judgment in their favour, ruling that Thumos Properties should pay GD Irons about R500-million in outstanding fees.
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