Abandoned R3.5bn East Mall to Face Resurrection this Week

The fate of the abandoned Sharemax Villa Retail mall in Pretoria, worth R3.5 million, will be determined this week through a voting process involving creditors. Thumos Properties 1 (Pty) Ltd, the majority stakeholder in the mall, has presented a business rescue plan for the site.

The voting will take place on July 20 during the creditors’ meeting. The mall, located in Wingate Park on a 130,000m2 piece of land, required the removal of 78 homes during its construction, which was halted in 2011 due to financial and litigation issues.

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The proposed business rescue plan will be subject to a vote, with a requirement of 75% approval from the creditors, with half of that percentage consisting of independent stakeholders. The mall has been involved in litigation proceedings for years, with controversy arising from elderly pensioners investing their money in the Sharemax scheme, which was found to contravene banking laws.

Various options have been considered to resolve the mall’s issues and are included in the proposed plan, which has been under discussion since March. One option is for Villa to purchase the site, acquiring ownership of all assets related to the property.

If the deal fails, the site may be auctioned, with Villa having the right to request a specific amount within a given range. Construction company GD Irons previously took legal action against the mall owners over outstanding fees amounting to R500 million. The Pretoria High Court recently ruled that Thumos should pay GD Irons the outstanding fees.

Source: East R3.5-billion massive ‘Tombstone’ mall to face resurrection this week

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