Unfinished and Abandoned: The R3.5 Billion Mall That Never Opened

A colossal shopping mall in Pretoria, once touted as a future retail giant, stands silent and empty more than a decade after construction began. Despite a price tag of R3.5 billion, the Villa Retail Park remains unfinished, stalled by the collapse of its developer and prolonged legal disputes. The company behind the project, Nova Property Group, now finds itself technically insolvent.

How a Promising Retail Giant Fell Apart

Initially planned as a mega shopping destination to rival Gauteng’s biggest malls, The Villa was 75% built when disaster struck. The project was backed by Sharemax, a property investment scheme that raised around R1.5 billion from the public, offering individuals shares in shopping centres as an investment in prime real estate.

Construction began in January 2009 with completion expected by August 2011. But before the deadline could arrive, Sharemax collapsed—leaving behind a partially built mall and thousands of investors out of pocket. The Villa Retail Park quickly became a symbol of one of South Africa’s largest retail development failures.

Located at the corner of Delmas and De Villebois roads in Pretoria East, the Villa site sprawls across 302,744 m². The plan included 111,285 m² zoned for mixed-use purposes—offices, retail, conferencing, and education. For perspective, that’s more floor space than both the Mall of Africa and Fourways Mall, two of South Africa’s largest shopping hubs.

Today, however, the space sits unused. No shops, no visitors—just a massive concrete shell, fading as time drags on.

Legal Woes and Incomplete Promises

While developers tried to revive the project over the years, the mall has remained in limbo. Litigation and financial mismanagement made progress impossible. In 2011, Capicol CEO Paul Kyriacou estimated it would take up to R800 million to complete the development. But no resolution ever followed.

In 2023, a glimmer of hope appeared. Villa Retail Park Investments, a company linked to Nova Property Group, announced its intention to acquire and complete The Villa. Nova CEO Dominique Haese insisted that finishing the mall and reimbursing original investors were still priorities—but admitted progress hinged on securing new funding.

Funding Uncertain, Legal Hurdles Remain

According to Nova’s 2024 financials, debentures tied to The Villa amount to R690 million. The company has committed to completing the mall within three years, but details remain scarce. A visit to the site in early 2024 revealed no active development and no visible progress.

Financially, Nova is on shaky ground. The group holds R2.244 billion in assets against R2.360 billion in liabilities, creating a negative equity of R90 million. This technical insolvency doesn’t necessarily mean bankruptcy, but it signals serious risk—especially given a reported R46 million loss in the last financial year.

The Mall’s Value Has Plummeted

Despite originally acquiring the property for R1.598 billion, its estimated value has since dropped dramatically. Nova now lists The Villa at just R750 million, based on the last available valuation in February 2022. Even that figure, the company notes, is disclosed at only 80% of its full value.

With its most significant asset devalued and its finances in the red, Nova faces a steep uphill battle. Whether The Villa will ever be completed—or simply remain a ghost mall forever—is a question that South African retail investors continue to ask.

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Sourced:Business Tech

Picture: Pretoria News