<\/p>\n
Accelerate Property Fund has reached a critical juncture in its multi-year restructuring, successfully raising and realising R2 billion in capital to deleverage its balance sheet.<\/p>\n
Read: After selling 10 properties, Fourways Mall co-owner has precious few left<\/p>\n
Since June 2024, the Reit (real estate investment trust) has aggressively trimmed its portfolio and injected fresh capital into its \u201ccrown jewel\u201d, Fourways Mall, aiming to transform into a more stable, premium retail-oriented fund.<\/p>\n
Fourways Mall turnaround<\/p>\n
The fund\u2019s recovery strategy is anchored by a R346 million investment (Accelerate\u2019s share being R173 million) into Fourways Mall.<\/p>\n
Under the new management of Flanagan & Gerard and Moolman Group, the mall\u2019s vacancy rate has dropped from 16.1% to 9.4% as at February 2026, with projections to reach 5% by September 2026.<\/p>\n
Operating metrics show significant momentum:<\/p>\n
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Footfall surged 20% year-on-year between November 2025 and February 2026;
\nTrading density increased by 8.6% over the rolling 12 months to February; and
\n\u2018The View\u2019 dining hub: A further R100 million is being invested to upgrade the food offering by September 2026, introducing high-end tenants like tashas, Pantry and Clay Caf\u00e9.<\/p>\n
Read:
Fourways Mall secures tashas, Pantry to cement turnaround
Walmart in big Black Friday opening at Fourways Mall<\/p>\n
Debt reduction and asset disposals<\/p>\n
To address its debt levels, Accelerate has concluded approximately R1.7 billion in property disposals over the last two financial years.<\/p>\n
Recent high-value transfers include Portside Tower for R580 million and 73 Hertzog Boulevard for R77.9 million in Cape Town. These initiatives have successfully reduced the group\u2019s debt by approximately R1.9 billion.<\/p>\n
Pending unconditional disposals, including The Buzz and Waterford in Gauteng (R215 million), are expected to transfer post-year-end, further strengthening the\u00a0fund\u2019s interest cover ratio\u00a0and capital structure.<\/p>\n
Near-term challenges: Oceana and KPMG<\/p>\n
Despite the operational gains, management has warned of upcoming pressure on earnings.<\/p>\n
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Oceana Group will vacate 6 049m\u00b2 at Oceana House in Cape Town in June, a move that could increase the fund\u2019s vacancy rate by 2.6% if the space is not quickly relet.<\/p>\n
Additionally, the fund\u2019s long-term lease with KPMG includes a \u201creversion to market\u201d clause effective August 2026. Because the current rental is materially above market levels, the adjustment is expected to reduce contractual rental income.<\/p>\n
Outlook and dividends<\/p>\n
In light of these pressures, the fund has engaged with debt funders for covenant relief and does not expect to declare a dividend in the near term.<\/p>\n
Accelerate\u2019s restructuring remains focused on execution, with the goal of embedding a more resilient operating platform aligned with its premium retail repositioning.<\/p>\n
The group will enter a closed period on 1 April, with full annual results anticipated on 31 July.<\/p>\n
#Accelerates #disposals #top #R2bn #Moneyweb<\/p>\n","protected":false},"excerpt":{"rendered":"
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