Large South African shopping mall completely empty and deteriorating in plain sight

 ·19 Jan 2025

The Villa shopping centre in Pretoria has been empty for 15 years and is slowly deteriorating. However, the owners plan to complete its construction and fill it with stores.

The Villa shopping centre is a R3.5 billion development and was set to be one of South Africa’s largest malls.

It comprises a gross building area of 302,744 square meters, of which 111,285 square meters are zoned for offices, conferencing facilities, education, training and retail.

The mall was built on the corner of Delmas and De Villebois roads in Moreleta Park, Pretoria, and was set to compete directly against the popular Menlyn Park.

The project, designed to house over 300 tenants, was part of Sharemax’s portfolio and attracted R1.5 billion in investor funding.

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

However, during this period, Sharemax landed in trouble. In 2010, the South African Reserve Bank found that Sharemax’s funding models contravened the Bank’s Act.

In September 2010, the Registrar’s Office issued directives to Sharemax and its property syndication companies to repay the funds obtained from members of the public.

This directive triggered the collapse of Sharemax’s property syndication schemes, in which investors lost millions.

The Villa shopping centre, Sharemax’s most ambitious property syndication project, was a casualty of the company’s collapse.

Construction on the shopping mall stopped in 2010 despite the project being 75% complete, a big blow to investors.

Sharemax founder Willie Botha tried to rescue the project and ensure investors did not lose money. However, he was unsuccessful.

In 2011, Capicol CEO Paul Kyriacou said completing The Villa shopping centre would cost R700 million to R800 million.

However, over the last fifteen years, the Sharemax matter has been tied up in litigation and there has been no further development at the mall.

New plans to complete The Villa shopping centre

The Villa Mall plan

The Villa shopping centre has been deserted for fifteen years and, due to its deterioration, has become an eyesore in the area.

The community has regularly expressed frustration with the structure, which is an eyesore due to its makeshift fence and overgrown vegetation.

The legal wranglings related to the project meant that the city could not address the problem, leaving everyone frustrated.

The good news is that there has been some progress regarding the project, with plans to complete the mall.

In May 2023, Villa Retail Park Investments, controlled by the Nova Property Group, offered to acquire The Villa.

Nova Property Group, established in 2011, is the rescue vehicle for the failed Sharemax property syndication scheme.

Nova Property Group CEO Dominique Haese said the group’s goal remains to complete the construction of The Villa shopping mall.

She added that they plan to repay relevant Villa Debenture Holders who had historically invested in this project.

However, she said this is funding dependent, but that funding is being pursued. It is assumed that it would cost over R1 billion to complete the project.

“Unfortunately, no further details than what has been communicated can be shared at this stage, but any material will be communicated when appropriate,” she said.

In a communique from December 2023, Nova Property Group said the goal is to complete the project within three years.

It remains to be seen whether this plan will materialise, as legal entanglements have prevented any resolution thus far, leaving the mall empty and unfinished.

Haese told Daily Investor that legal disputes must be resolved, which remain in the process.

The Villa shopping centre today

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