The once-promising Villa shopping mall in southeast Pretoria, which was expected to become one of the largest shopping centres in South Africa, stands completely empty, abandoned for fifteen years. What was meant to be a prime retail hub has now become an eyesore, caught in a web of legal and financial complications, leaving both investors and the community in limbo.
Situated at the corner of Delmas and De Villebois roads in Moreleta Park, the Villa shopping centre was one of the most ambitious projects by Sharemax Investments, a company that once held a prominent position in the South African property investment market.
The Rise and Fall of Sharemax Investments
Sharemax was established in 1999 by Willie Botha and rapidly grew to become one of the largest unlisted property investment firms in South Africa. Botha, the company’s managing director, positioned Sharemax as a way for retail investors to access commercial real estate. According to Botha, the company took wholesale buildings and turned them into retail investment opportunities through shareholding schemes.
Investors, through these schemes, obtained shares in shopping centres, which were marketed as having prime suburban locations. Sharemax acted as the promoter and manager of these projects, ensuring that investors had a stake in a building without a bond on the property.
Initially, it appeared to be an attractive investment model. However, in 2010, the South African Reserve Bank found that Sharemax’s funding practices violated the Bank’s Act. The Reserve Bank issued a directive in September 2010, ordering Sharemax and its property syndication companies to return funds obtained from the public. This directive triggered the collapse of Sharemax’s entire property syndication scheme, causing investors to lose millions of rands.
While some critics argue that the South African Reserve Bank’s actions caused Sharemax’s downfall, others, including Noluntu Bam, the former ombud for financial advisory services, labelled certain Sharemax projects as operating like a Ponzi scheme. Investigations into the company by the Hawks and other authorities ensued, with allegations of fraud and potential pyramid schemes coming under scrutiny. Despite this, Sharemax’s legal team denied these accusations.
The Villa Shopping Centre: Ambitions Halted
The Villa shopping centre was meant to be Sharemax’s crowning achievement. Thousands of investors poured approximately R1.5 billion into the project, and the development promised to rival other large malls like Menlyn Park. Construction began in January 2009, and the mall was expected to be completed by August 2011.
The Villa was designed to offer over 90,000 square metres of retail space for more than 300 tenants. The precinct would also include 16,000 square metres of office space and 5,000 square metres of lifestyle amenities. Moreover, the shopping centre was planned with advanced environmental initiatives. It was set to incorporate rainwater harvesting, energy-efficient materials, and green roofs to minimise its environmental impact.
However, as construction reached 75% completion, the Sharemax collapse in 2010 halted all progress. Despite attempts by Sharemax’s Willie Botha to salvage the project and protect investors’ funds, the effort was ultimately unsuccessful. Capicol CEO Paul Kyriacou, involved in the development at the time, estimated that the mall would require between R700 million and R800 million to finish. Unfortunately, the ongoing legal entanglements surrounding Sharemax have kept the project frozen for over a decade.
A Community Eyesore and Legal Battles
For residents of Moreleta Park and surrounding areas, the derelict Villa shopping mall is a constant reminder of what could have been. The imposing, half-finished structure sits empty, with no signs of development or resolution in sight. Over the years, community members have expressed frustration at the unsightly building, which has become a symbol of missed potential.
Despite the outcry, local authorities have been unable to take action due to the numerous legal disputes that continue to surround the Sharemax saga. These legal battles, combined with unresolved financial issues, mean that the Villa shopping centre remains an unfinished, ghostly presence in the area.
The Uncertain Future of The Villa Mall
The Villa mall’s future remains shrouded in uncertainty. With legal proceedings dragging on for over fourteen years, there is still no clear indication of whether the mall will ever be completed or repurposed. Investors who poured their money into the project continue to face significant financial losses, and the community is left with an abandoned building in their midst.
The R3.5 billion investment that was supposed to transform the area into a bustling retail and office precinct now lies dormant, a ghost shopping centre with no sign of revival.
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