Property Flash


April 18 2024 12:30

Accelerate Property Fund (APF), which co-owns Fourways Shopping Centre, has a R200m rights offer to settle debts and realign finances, especially concerning the mall which is its problem child.

After its expansion in September 2019 the mall emerged as SA’s largest shopping centre, at 178,000m² and 350 stores. But with a reported increase in vacancies from 14,349m² in March 2023 to 15,109m² in September 2023, things are bad. Accelerate owns 50% of the mall, while the other 50% is owned by Azrapart, which is owned by Michael Georgiou.

The rights offer will release 500-million ordinary shares, or rights offer shares, at a subscription price of 40 cents each.

The group initially aimed for R300m, but opted for a R200m rights offer instead. Accelerate appointed Flanagan & Gerard, which developed Ballito Junction, Morningside Shopping Centre and Nicolway, as managing agents late last year to help fix the tenant mix.

The entity K2016336084 holds 31.07% of Accelerate, making it the largest shareholder of the company. This entity is owned by iGroup. iGroup listed Castleview Property Fund a few years ago.

K2016336084 will underwrite the R200m rights offer. Perhaps they will delist Accelerate later or merge it into Castleview. At this stage Castleview is an investment holder which also owns six residential sites in Cape Town, valued at R340m which have been developed for disposal or will be developed once the appropriate rights have been secured.

Leave a Reply

Your email address will not be published.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