King’s Mall sold for R62million

gonubie’s king’s mall went under the hammer yesterday. an east london- based property investment and private equity company put in the highest bid – r62million – and aims to put it back on track.

a buzz of anticipation surrounded the auction, set up in the mall’s forecourt, with roughly 200 onlookers craning their necks to witness the bid that finally brought the hammer down.

although the three-year-old mall has been valued at r120m, a history of low occupancy and the collapse of the mall’s developers meant it could be picked up for a song by a brave investor.

the bidding was opened by auction alliance’s chief executive rael levitt at r65m, but one awkward pause later an opening bid of r30m was offered.

from there, it was a three-horse race among true group’s property managing director brett hayward, freddy schoonhoven, a property developer from richards bay, and an unknown man who was taking bids via cellphone.

in r1m increments the bids climbed steadily until the gavel came down to spontaneous applause at r62m in favour of hayward.

levitt said 15 interested buyers had registered to take part in the auction – including three jse-listed property funds.

the mall – currently owned by nedbank – was sold with all leases in place and with a four-day cooling off period.


schoonhoven told the dispatch that he and partner alfons schoonhoven had reckoned the mall would be sold for about r55m.

“we didn’t expect it to go so high,” he said.

he added that they would be in port elizabeth for the auction of king’s court centre due to take place today.

both king’s mall and the r300m king’s court were casualties of the collapse of the king financial services (kfs) investment scheme.

the company was placed under provisional liquidation on july 21 last year by the cape town high court after an investigation by the financial services board (fsb).

liquidators sanek trust and independent recovery services were appointed to manage the centres.

according to the auctioneers, they are the highest value auctions ever in the eastern cape.

stephen gore of sanek trust, one of the liquidators hoping to recover money lost due to the collapse of kfs , yesterday told the dispatch that while the sale represented a fraction of the market value of the mall, which had debts of r200m, it was the best that could be expected in “these depressed economic times”.

“this is an astute purchase because when the economy improves and when there is more disposable income in the pockets of consumers, there will be money to be made.”

levitt was equally optimistic that the fortunes of the beleaguered mall would take a turn for the better.

“we are delighted,” he said.

“what is important is that this chapter closes on the king’s mall saga.

“this is no white elephant, (the new buyer) will make the centre work.”