Ayat Mall, located near the roundabout popularly bearing its name, is at the centre of a lengthy dispute between hundreds of shop owners and the real estate developer, Ayat S.C.

Shop owners complain that the Mall lacks service permits, which prevents them from renting their properties or running their businesses. They claim that the developer has yet to complete essential infrastructure, including electricity, reliable generators, a sufficient water supply, sewage systems, functional elevators, and parking spaces. These claims have deepened the tension between the two parties, leaving portions of the property largely idle.

The Ayat Shopping Mall Owners' Association, representing over 300 shop owners, says the permit problem dates back 15 years. Its members claim that the developer failed to finish crucial infrastructure in the building, hindering their ability to operate. They raise issues with the property's water shortage, leaving shops without running taps, and generators intended to provide backup electricity have either not been installed or are not fully operational. They also complain of an inadequate sewage system that has led to waste accumulation in the basement, partly because the septic tanks lack capacity.

The Association, founded in 2017, has board members such as Solomon Kebede, Dagim Hailegiorgis, Eleni Wondimu, Ruth Girmay, and Hirut Gezahegn. According to the board members, although 538 of 580 shops were sold, only around 200 are currently serviceable. The Association’s Manager, Ermias Kebede, says the unresolved issues have made it difficult to get service permits, which is a mandatory requirement before any commercial building can fully operate.

Says Ermias: "This predicament reduces the Mall’s attractiveness, leads to tenant loss, and frustrates owners who want to lease out their properties."

Ayat's role in this dispute is tied to a handover agreement dating back to December 2015. Contracts for the shops were signed in 2009, and owners say the developer was obligated to provide water, electricity, a septic tank, balcony marble, interior carpeting, and related essential work. The dispute worsened after the arrest of Ayat’s founder and major shareholder, Ayalew Tessema, in May 2013.

Buyers claim that the uncertainty following Ayalew’s arrest forced them to accept a hasty handover of an unfinished property. They say they were given the option to let Ayat complete the building or handle the remaining construction themselves. Due to ongoing real estate concerns, they chose to manage it themselves. The result, according to the Association leaders, was Ayat’s commitments were never fully met.

They claim the developer has not delivered the building design plans or the structural drawings, blueprints, bills of quantity, and material specifications needed to finalise the building's infrastructure. Owners assert that these documentations are crucial for conforming to the original design and for addressing outstanding work such as installing proper elevators, securing parking spaces, and fixing sewage problems.

One shop owner, who requested anonymity, expressed frustration over the mall’s incomplete infrastructure, which has made it difficult to operate.

“We are paying property taxes without even being able to work,” she said. “They assured us everything would be handled, so we signed the contract.”

She recalls that before the handover in 2015, Ayat Real Estate called a meeting with shop owners, informing them that the company was in financial distress. At the time, she claimed that the shop owners were urged to complete interior work, such as installing gypsum and ceramic tiles, while Ayat promised to take care of utilities, generators, parking, sanitation, and other infrastructure.

Now, with major infrastructure still incomplete, many shop owners are struggling to use their spaces as intended, according to her. Some have resorted to renting out their shops, while others have moved out entirely.

She told Fortune that instead of a thriving shopping centre, even furniture stores have vacated.

Letters exchanged between the Association, the Addis Abeba Construction Permit & Control Authority (CPCA), and other city bureaus detail Ayat's alleged lack of progress. The Authority confirmed the absence of essential infrastructure like parking, lighting, and functional drainage systems.

In November 2023, the Authority issued a notice to the Addis Abeba Trade Bureau, Ayat S.C., and the Association, stating that the Mall was running without authorisation, violating the city's building code issued in 2009. As a result, the City's Trade Bureau was instructed not to issue or renew business licenses for shops in the Mall.

Binyam Kassahun, a senior expert at the Authority, confirmed that Ayat Mall has yet to meet the standards set by law.

"No building can legally operate without a service permit," he told Fortune. "A few shops began operating without a permit. It's a serious breach of regulations."

The parking space further complicates the dispute. According to the Association's leaders, the basement, which should serve as a parking area for those visiting the Mall, has been converted to other uses, including storage and office space. This allegedly violates a 2020 permit that allowed modifications to the basement if it would be used for parking. In separate letters from the city's Traffic Management Authority (TMA), the Mall's managers received a notice for failing to secure a parking services eligibility certificate and not adhering to the original or revised building design.