Loading...
See More

Auction of malls cancelled

Mar 28 2011 13:26 I-Net Bridge

Related Articles

Liquidated malls to be auctioned

More Platteland malls in pipeline

E Cape malls under the hammer

Malls still make moolah

Rural malls still pumping

Malls getting fuller, says Hyprop

 
Johannesburg - The Lonehill Shopping Centre and Bel Air Mall have been sold and the auction of the two properties has been cancelled, Auction Alliance said on Monday.
 
"The liquidators have received and accepted, with the support of secured creditor Absa Bank, offers for the Lonehill Shopping Centre and Bel Air Mall.
 
"Auction Alliance is not at liberty to confirm the purchase price but we are at liberty to advise that the auction is cancelled."
 
The sale of the Johannesburg malls followed the high-profile liquidation of various entities controlled by property moguls, the Theodosiou brothers.
 
The brothers - Tony, Dimitri and Sedrick - allegedly built shopping malls without the required council permission.
 
In April 2007, the City of Johannesburg was granted two court orders, which the brothers ignored, to stop extensions of the well-known Lonehill Shopping Mall without council permission.
 
In a landmark decision in the Johannesburg High Court in 2007, Judge Ivor Schwartzmann handed the brothers a three-month suspended sentence, R20 000 in fines and warned them they would be jailed if they did not "immediately cease" with the unapproved construction of the Lonehill mall.
 
At the time, irate Lonehill residents and the Johannesburg City Council hailed the court order as a victory to stop unlawful commercial property development in prime residential suburbs.
 
The Johannesburg-born brothers, who traded under the name Universal Property Professionals, were involved in retail and commercial property development for more than three decades, but incurred massive debt when they developed and renovated two regional shopping malls and other developments around the country.
 
In October 2008, Absa Bank brought an application to liquidate Immobili Retail Investments, which owns the 30 000m² Lonehill Shopping Centre, and also applied to liquidate Bel Air Mall, which owns a 20 000m² mall on Malibongwe Drive in North Riding.
 
The bank, which was owed more than R900m and accruing interest at R11m per month, brought a 4 000-page liquidation application in the Pretoria High Court.
 
A lengthy two-year legal spat between the bank and the developers ensued after the provisional liquidation order was granted, as the brothers then brought an application to have Absa's applications set aside.  
auction alliance  |  property

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
1 comment
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're talking about:

Small Business

Retailers of any shape and size can now unlock the power of mobile transacting.
 
 

BMW drift battle: M235i vs. speedway bike

Watch this insane drift contest with four-times dirt-track World champion Karl Maier riding a speedway bike against a BMW M235i.

 
 

Men24.com

Want to start talking dirty?
Everyday struggles of naturally skinny guys
And this year's Miss Bumbum title goes to...
How to maintain your mo, bro

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...