{"id":848244,"date":"2026-01-19T16:30:00","date_gmt":"2026-01-19T14:30:00","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=848244"},"modified":"2026-01-19T15:22:56","modified_gmt":"2026-01-19T13:22:56","slug":"inside-the-spooky-and-deserted-shopping-mall-that-is-completely-empty","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/property\/848244\/inside-the-spooky-and-deserted-shopping-mall-that-is-completely-empty\/","title":{"rendered":"Inside the spooky and deserted shopping mall that is completely empty"},"content":{"rendered":"\n

Two videographers give viewers a look inside the spooky R3.5 billion Villa shopping centre in Pretoria, which has been deserted for 15 years.<\/p>\n\n\n\n

The Villa Retail Park was the flagship project of Sharemax Investments, a property syndication scheme that collapsed in 2010.<\/p>\n\n\n\n

The shopping centre was constructed on the corner of Delmas and De Villebois roads in Moreleta Park, Pretoria.<\/p>\n\n\n\n

The Villa Mall was set to become one of the largest in South Africa, competing with the popular Menlyn Park.<\/p>\n\n\n\n

It was set to host over 300 tenants across 90,000 square meters of retail space, making it the preferred shopping destination for residents of the area.<\/p>\n\n\n\n

The plan was to ensure people chose Villa Mall over alternatives such as Menlyn Shopping Centre and Woodlands Mall.<\/p>\n\n\n\n

The precinct would also feature 16,000 square meters of office space and around 5,000 square meters of lifestyle space.<\/p>\n\n\n\n

There was a strong focus on being green, which included rainwater harvesting, and a landscape designed with waterwise plants.<\/p>\n\n\n\n

A combination of green roofs, photovoltaics, and a roofing material with a high solar reflectance index would have minimised the urban heat island effect.<\/p>\n\n\n\n

30% of the cement used in the project was replaced by industrial waste products, reducing the concrete\u2019s embodied energy.<\/p>\n\n\n\n

There was also a 20% reduction in structural concrete by using a lightweight facade and internal partitioning.<\/p>\n\n\n\n

Construction of the Villa Retail Park started in January 2009 and was anticipated to reach practical completion at the end of August 2011.<\/p>\n\n\n\n

However, just as the mall was 75% complete and starting to take shape, the Sharemax scheme collapsed, which stopped construction.<\/p>\n\n\n\n

Sharemax collapse halts construction<\/h2>\n\n\n\n
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Construction of the Villa Mall progressed well, but in 2010, disaster struck after the South African Reserve Bank (SARB) stepped in.<\/p>\n\n\n\n

Sharemax acted as the promoter where \u201cwell-located, prime suburban shopping centres are registered and managed as a single company\u201d.<\/p>\n\n\n\n

Therefore, the individual investors obtained a shareholding in a shopping centre with a building as the underlying asset, without a bond on the property.<\/p>\n\n\n\n

It sounded great on paper. However, in 2010, the South African Reserve Bank found that Sharemax\u2019s funding models contravened the Bank\u2019s Act.<\/p>\n\n\n\n

This intervention halted the flow of funds, and construction stopped when the building was approximately 75% complete.<\/p>\n\n\n\n

In 2011, Capicol CEO Paul Kyriacou, which was the construction partner, said completing the Villa Mall would cost between R700 million and R800 million.<\/p>\n\n\n\n

However, over the last fourteen years, the Sharemax matter has been tied up in litigation, and there has been no further development at the mall.<\/p>\n\n\n\n

The community has regularly expressed frustration with the structure, which is an eyesore in the area.<\/p>\n\n\n\n

However, the city could not do much as there are many ongoing legal battles surrounding the Sharemax scheme.<\/p>\n\n\n\n

This means the Villa Mall remains completely empty, with no clarity on when it will be completed, if ever.<\/p>\n\n\n\n

Nova Property Group financial information<\/h2>\n\n\n\n
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Nova Property Group is the rescue vehicle that was established to manage the properties and assets formerly owned by the Sharemax property syndication scheme<\/p>\n\n\n\n

In May 2023, Villa Retail Park Investments, controlled by the Nova Property Group, offered to acquire The Villa.<\/p>\n\n\n\n

Nova Property Group CEO Dominique Haese said the group\u2019s goal remains to complete the construction of the Villa Mall.<\/p>\n\n\n\n

Haese said repaying relevant Villa Debenture Holders who had historically invested in this project was even more important.<\/p>\n\n\n\n

According to the Nova Property Group\u2019s annual financial statements, debentures linked to Villa Retail Park amounted to R690 million.<\/p>\n\n\n\n

However, she said this was funding-dependent. Funding to complete the Villa Mall is being pursued.<\/p>\n\n\n\n

\u201cUnfortunately, no further details than what has been communicated can be shared at this stage, but any material will be communicated when appropriate,\u201d she said.<\/p>\n\n\n\n

In a December 2023 communique, Nova Property Group stated that the goal was to complete the project within 3 years.<\/p>\n\n\n\n

To date, not much has happened. Legal entanglements have prevented any resolution thus far, leaving the mall empty and unfinished.<\/p>\n\n\n\n

The project has been abandoned for 15 years, and a recent visit to the site found no signs of activity.<\/p>\n\n\n\n

Nova Property Group\u2019s annual financial statements<\/h2>\n\n\n\n
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The Nova Property Group\u2019s annual financial statements for the year ended 29 February 2024 raised further concerns about its financial state.<\/p>\n\n\n\n

It showed that the Nova Property Group has assets of R2.244 billion and liabilities of R2.360 billion, resulting in negative equity of R90 million.<\/p>\n\n\n\n

It means that Nova Property Group is technically insolvent. Simply put, it cannot settle all its liabilities if all its assets are liquidated.<\/p>\n\n\n\n

It is not a death sentence. There are situations in which a company is technically insolvent but still able to meet its financial obligations.<\/p>\n\n\n\n

However, technical insolvency creates a situation where bankruptcy becomes a more likely outcome if left unchecked.<\/p>\n\n\n\n

Nova Property Group reported a loss of R46 million for the year, further weakening its financial position and raising doubts about its prospects.<\/p>\n\n\n\n

The Villa Retail Park is the largest asset in Nova Property Group’s portfolio, with a fair value of R750 million.<\/p>\n\n\n\n

The property had a purchase price of R1.598 billion. However, a reversal in the purchase consideration and fair value adjustments reduced the value to R750 million.<\/p>\n\n\n\n

\u201cThe Villa Retail Park has been disclosed at 80% of its fair value based on the last valuations performed,\u201d Nova Property Group said.<\/p>\n\n\n\n

The last valuation of The Villa Retail Park was conducted on 28 February 2022 by Mr E Uys, Mr A Steyn, and the board of directors.<\/p>\n\n\n\n

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Inside the Villa Retail Park<\/h2>\n\n\n\n

ZARFiles posted a mini documentary on YouTube that goes inside the Villa Retail Park to show viewers what it looks like.<\/p>\n\n\n\n

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