Bank buys Shabangu building for R66m

Nedbank has bought the Sanlam Middestad building which belonged to Roux Shabangu.

The building in the Pretoria central business district was at some stage the headquarters of the South African Police Service.

In a two-man bid, the financier bought the building for R66 million at an auction held at the sheriff’s offices in Centurion yesterday.

Nedbank upped the first offer, of R65m for the building, at the event which drew much interest from members of the public, and the many who turned up to witness the auction.

Nedbank financed the purchase of the building by Shabangu, to the tune of R320m, in 2011.

They had given Roux Shabangu Properties the bond, whose payment was granted on the basis that a valid long-term lease agreement was signed by the Department of Public Works as the lessee.

The bank was forced to turn to the high court when Shabangu breached payment agreements, and they were granted the rights to bring it under the hammer, to recover costs.

Shabangu recently estimated the value of the 18-storey building at R85m.

Over the years the building became embroiled in controversy when Shabangu was accused of entering into corrupt deals to get the lease agreement.

At the centre of the problem was a R500m lease agreement, entered into by Shabangu and the Department of Public Works on behalf of the SAPS, which was labelled irregular and corrupt by the public protector during an investigation last year.

The then national commissioner of police, Bheki Cele, was fired by President Jacob Zuma for his role in securing the agreement, both for this building and another belonging to Shabangu in Durban.

He was fired following recommendations by the public protector, and after being declared unfit to hold office by a commission of inquiry.

Gwen Mahlangu-Nkabinde, who was minister of public works at the time, and other senior government officials also lost their jobs for their part in the lease of the building.

Shabangu, a property mogul whose dealings extend beyond South Africa, recently came under threat when Boogertman Smit Building applied for permission to have his businesses liquidated.

Nedbank stepped in to stop the liquidation, claiming that Roux Property Fund was indebted to Nedbank to the tune of R307 489 559.

They said the liquidators and auctioneers were the only ones who would benefit from the winding-up of the business, and they were granted the right to intervene in the liquidation process by the Pretoria High Court this week.

According to reports from the sheriff of Pretoria, 10 of the building’s 18 floors had been stripped and are mere shells.

The triple-storey retail podium, with it’s double-storey parking bays, and the 18-floor office tower, currently has 38 tenants in the retail section.

They have short-term leases. - Pretoria News