Fourways Mall is the largest shopping centre in South Africa, with a gross lettable area of 178,000 square meters and 350 stores.
Despite its size, the mall has faced high vacancy rates and struggles since its multi-billion-rand redevelopment in 2019.
The unfortunate timing of the redevelopment coincided with the onset of the COVID-19 pandemic, adding to the difficulties.
Accelerate Property Fund (APF) – who, along with Azrapart, co-owns the mall, noted in its most recent financial results that Fourways Mall’s vacancies increased from 14,349 sqm in March 2023 to 15,109 sqm six months later.
In its latest attempt to improve Fourways Mall’s performance, its owners appointed Flanagan & Gerard Property Development and Investment (F&G), led by renowned retail property entrepreneurs Pat Flanagan and Peter Gerard, to help turn it around from a property asset-management perspective, while the Moolman Group was also appointed to have oversight of property management at the mall.
Paul Gerard, MD of Flanagan & Gerard, told Moneyweb that transforming and filling a large shopping centre is a significant challenge. However, by year’s end, he anticipates visitors to the mall will notice substantial improvements in both customer experience and tenant mix.
The firm, known for managing properties like Morningside Shopping Centre and Vaal Mall, took over the mall's management in December last year, with their role becoming effective in February.
Gerard explained that they recruited the best property management team they could find, including partnering with the Moolman Group, known for its strict financial management and similar values. This partnership aims to implement necessary procedures and processes to improve the mall's operations.
“What we’ve been doing is we’ve been planning, but with a lot of behind-the-scenes work, including improving a lot of the compliance that’s required – which includes lighting levels in back-of-house areas.”
“We’ve created a new taxi facility area underneath the building, which is not visible but allows us double the number of taxis we have in the shopping centre. [There is] a lot of general maintenance you’ll notice around the aeroplane [Kidzania] in the mall.
"We’ve tidied it up and hoarded it [up], and tiled where there were no tiles. And we’ve been restructuring the team on site – [they] do have a whole bunch of very good-quality personnel who just needed a bit of direction.
“And I think that we, together with the Moolman Group, are giving them a lot more direction to implement the small changes that, when all of them are put together, make big changes.”
F&G's focus includes improving lighting, directional signage, and brand visibility. They are addressing parking and traffic flow challenges, creating an e-hailing drop-off area, and enhancing the mall's approach with better traffic lights and streetlights. They are also establishing a business improvement district in collaboration with neighboring property owners.
Gerard stressed the importance of stimulating energy nodes within the mall, noting that it’s a collection of destinations rather than a single centre.
He said the decision to manage Fourways Mall, despite its high vacancy rates, was influenced by its prime location on major traffic routes and its excellent entertainment facilities.
The mall’s strong base tenant mix, including flagship stores from major brands, provides a solid foundation for improvement.
Gerard provided updates on the mall’s current status, mentioning that the vacancy rate has dropped to under 15% from nearly 20%. New additions include a flagship Incredible Connection store and several other retailers.
Despite its 176,000 square meters of retail space, Fourways Mall will repurpose some areas to support but not strictly be retail. This includes introducing a Planet Fitness gym, which attracts daily visitors, and creating a Wellness Hub featuring activewear brands and healthy food options.
A new collaborative workspace is expected to bring 500 to 1,000 additional workers who may also shop during their workday. Additionally, padel courts will attract sports enthusiasts.
The mall is incorporating specialty and aspirational retail similar to Morningside Shopping Centre, with a focus on unique food retailers like grocers, artisanal bakers, and charcuterie.
The mall has a planned rights offer of around R400 million to support the turnaround. The capital expenditure programme spans three years and includes both income-generating and customer experience improvements.
Current projects include enhancing lighting and traffic flow in the north-eastern parkade, creating an e-hailing drop-off area, launching VIP parking near Woolworths, and providing free Wi-Fi. These upgrades are set to be operational by mid-August this year.
While the R400 million turnaround plan might require more funding over time, Gerard stressed the importance of efficient spending to maximize impact.
Since F&G and the Moolman Group have taken over, he said there has been positive feedback from potential tenants, with many expanding their footprint or bringing new brands to the mall.
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