Michael Georgiou, a non-executive director at Accelerate Property Fund, had to sell shares worth R57 million on the eve of a R200 million rights issue due to lender demands.
According to Moneyweb, on May 21, the last trading day to be eligible for the rights offer, Accelerate announced that Georgiou, who is also a former CEO, sold 107 million shares, equivalent to about 8% of his 29.13% stake, through an off-market disposal under a lending arrangement.
Accelerate quickly clarified that no clearance was needed for this transaction because it stemmed from a lender exercising its rights under an existing agreement.
Moneyweb identified the lender as Investec, which is also the banker for Urban Retail Property Investments 3, Accelerate's largest shareholder and underwriter of the rights issue.
The JSE-listed diversified REIT then corrected an error in its circular, noting that directors had indeed intended to participate in the rights offer, contrary to earlier statements.
Accelerate's portfolio includes 27 properties across retail, office, and industrial sectors in South Africa. Fourways Mall, its largest asset, is co-owned by Azrapart, controlled by Georgiou.
Georgiou, who has a 20-year property career and has acquired or developed over 100 properties, including Fourways Mall, Cedar Square, and Loch Logan Waterfront, had stepped down as CEO in November 2022 to focus on Fourways Mall.
Accelerate is conducting the rights issue to settle debt and stabilize its business, aiming to increase its shares by about 38%.
To reposition its flagship asset, Fourways Mall, the group plans to spend R200 million from non-core asset disposals. It owns several properties in the Fourways area, including BMW Fourways, Cedar Square, The Buzz Shopping Centre, and Waterford, as well as Portside in Cape Town.
The R8 billion Fourways Mall underwent a major expansion in September 2019. Its retail performance was initially hindered by the construction period and later by the Covid-19 pandemic.
Joint CEO Abri Schneider stated that the company is re-evaluating property and asset management at the mall to enhance its appeal as a family-oriented entertainment and shopping destination.
This new strategy includes improving the retail experience, increasing dwell time with better entertainment and food options, right-sizing stores, and attracting shoppers from beyond the immediate area. Upgrades to signage and aesthetics both inside and outside the mall are also planned.
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