Looking for something different? Get in touch with us!

Fourways Mall requires additional funds to aid turnaround

Staff Writer
Estimated reading time: < 1 minute

JSE-listed Accelerate Property Fund, the co-owner of Fourways Mall, is seeking up to R300 million from existing shareholders by issuing new shares.

This capital infusion is necessary to address existing debt and facilitate the repositioning of Fourways Mall.

Each of the co-owners, including Azrapart (owned by Michael Georgiou), will contribute R200 million to revitalise the struggling super-regional mall, which currently grapples with high vacancy rates.

A Moneyweb investigation in January revealed that over a quarter of the mall’s 450 outlets were vacant.

Accelerate Property Fund’s latest financial report for the interim period ended 30 September 2023 showed an increase in vacancies at Fourways Mall from 14,349 sqm in March 2023 to 15,109 sqm in the reporting period, with an overall vacancy rate of 17.0%.

To address this issue, the group has appointed Flanagan & Gerard, known for their work on Ballito Junction, Morningside Shopping Centre, and Nicolway, as managing agents to improve the tenant mix, with a focus on family-oriented offerings.

Accelerate Property Fund is moving forward with a Rights Offer, issuing 500 million ordinary shares (Rights Offer Shares) at a subscription price of 40 cents per share. Initially considering raising up to R300 million, the group settled on a R200 million rights offer.

Since 2020, Accelerate Property Fund has been selling assets to generate funds for debt repayment. In December, the group approved R1.1 billion in asset disposals.

Properties sold include its European portfolio, assets in Montague Gardens and Sandton, and shopping centers such as The Leaping Frog in Fourways and Cherrylane in Pretoria.

Last year, it also sold Eden Meander Shopping Centre in George for R530 million.

Shares in Accelerate are down 36% over the past year.

Leave a Comment

Your email address will not be published. Required fields are marked *