Property Flash


June 12 2024 09:15

JSE-listed Accelerate Property Fund which co-owns troubled Fourways Mall, will sell Cherry Lane Shopping Centre for R57m as it tries to clean up its balance sheet. The company has been battling to cover interest expenses and is trying to raise a few hundred million rand to fix problems with Fourways Mall.

Cherry Lane Shopping Centre is located by Brooklyn Circle in Pretoria, close to Brooklyn Mall. Accelerate’s focus since listing has been to focus on developing the Gauteng Fourways and Cape Town Foreshore mixed-use nodes.

The group bought Cherry Lane, a neighbourhood centre, in 2013, and it was valued at R65m at the end of September 2023. Currently the mall is worth R60m. Accelerate has tried to sell the mall in the past (2023) for R70m. Accelerate said this week the mall would be sold to a group called QSPACE.

“This decision was made as part of Accelerate’s ongoing efforts to review its assets and ensure that they align with the company’s current business strategy and growth plans,” Accelerate said.

Accelerate is the 50% owner of South Africa’s biggest mall, Fourways Mall, which is contributing to significant financial problems for the group. Private group, Azrapart owns the other half.

Accelerate is moving ahead with its R200m rights offer in a bid to raise funds from shareholders to address its finances.

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