Trillian booted out of Melrose Arch offices

Trillian Capital Partners, the company formerly owned by Gupta lieutenant Salim Essa, has been kicked out of Johannesburg’s most exclusive office space at Melrose Arch because of reputational risk.

Amdec CEO and Melrose Arch spokesman James Wilson said on Friday that Trillian had left in March with about a year to go on its lease.

Melrose Arch is 75%-owned by Melrose Arch Investment Holdings, which is a subsidiary of Amdec, an unlisted property investment company.

“Trillian cancelled their lease by mutual agreement and vacated the premises. We are happy to be rid of them,” he said.

Wilson said that Trillian had paid about three months of rent in advance and that Amdec would not pursue them for more money.

“There were reputationrelated risks to keeping them as a tenant. We are not going to try to collect the rest of the rent on the lease and the relationship between us and Trillian has been terminated.

“Because of the negative nature of dealings by Trillian, it was in our best interests to

no longer have them as tenant,” Wilson said.

In April, power utility Eskom began a legal process to recoup R1.6bn paid to Trillian and consulting firm McKinsey on the grounds that proper procurement processes were not followed. While McKinsey is not opposing the application and said it wanted to pay back the money, Trillian said it would oppose Eskom’s bid.

The Asset Forfeiture Unit also has an application in the high court to recover the money that it says it regards as the proceeds of crime.

Whistle-blower testimony during state-capture parliamentary hearings revealed how at the height of the Gupta’s influence over state-owned companies Eskom officials had often met Trillian executives, including Essa, at Melrose Arch.

Integrated Capital Management — whose partners Stanley Shane, Clive Angel and Marc Chipkin helped set up Trillian — also has offices in Melrose Arch. Their company with Salim Essa, Antares Capita, was also registered with a Melrose Arch address.

Melrose Arch charges among the highest office rentals in SA, competing with landlords in Rosebank and Sandton.

Wilson said that the average office rental rate at Melrose Arch was R200/m² and Trillian had occupied 1,900m² of office space.