Mega City plans on hold

2011-10-13 00:00

THE multi-million rand Edendale MegaCity, a 26 000-square metre shopping centre on Moses Mabhida Road that has promised to be a huge boon for residents there, has been halted because there is no finance available for it, Msunduzi Municipality said.

The shopping centre, which will cost an estimated R250 million on completion, was due to open its doors this month, but the land is still vacant and no construction has taken place.

Municipal spokesperson Brian Zuma said that although the sale agreement with Tebfin (Pty) Ltd was signed in 2009, the transfer of the property could not take place as a survey, rezoning and an environmental impact assessment study had to be finalised.

The project is a black economic empowerment (BEE) joint venture between well known local property developers Rob Alexander of Ducatus Properties and Tebogo Mogashoa of Tebfin Developments.

Zuma said, “On September 3, 2009, Tebfin were given permission to circulate their building plan, but approval cannot be given until such time as the council has received the full purchase price.

“While the environmental impact study was still in progress Tebfin were given early occupation to do excavations on the land on August 1, 2010.”

He said Tebfin was unable to continue with the development because there was no building plan approved and transfer could not be concluded because the suspensive conditions had not been concluded.

“They were therefore unable to obtain finance from financial institutions as the transfer had not taken place,” Zuma said.

There was huge excitement among the residents of Edendale when they saw construction vehicles levelling the plot where the centre was to be built, but soon everything came to a standstill, raising questions among community members whether there will ever be a Mega City in the area.

The Mega City has become a laughing stock among commuters as they drive past the site.

Mogashoa of Tebfin admitted that the property had not yet been transferred.

“The project has not stopped, but merely delayed on account of market conditions. We are currently revising our feasibility studies given the number of shopping centres in the area that have been developed in the past two years,” Mogashoa said.

When asked about the funding and whether the building plan has been approved, he said these are still pending.

Zuma added that attorneys Sangham Incorporated were instructed on July 18 to attend to the transfer of the land from the municipality to Tebfin.

“In terms of the conditions of sale Tebfin have 120 days to take transfer. The deadline is therefore November 18,” he added


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