With a huge overhaul under way, Fourways Mall, SA’s largest shopping centre, is on a mission to reclaim its place at the heart of retail.
But can the mall, once a thriving hotspot, rediscover its former allure and once again become a must-visit destination?
Co-owned by Accelerate Property Fund and Azrapart Group, Fourways Mall is undergoing a R400m revamp, with both owners contributing R200m each.
When Flanagan & Gerard and the Moolman Group took control of management in May last year, the mall — with a gross lettable area of 180,000m² and about 350 stores — was battling rising vacancies. After an expansion in 2019, it reported an increase in vacant space of 15,109m² by September 2023 from 14,349m² in March 2023.
Asset management group Flanagan & Gerard, a privately owned family business with a strong retail track record, was approached by shareholders on the basis of its reputation for success.
Director John Holley told Business Day the company maintained a 0.4% vacancy rate across its asset portfolio.
Over the years, Flanagan & Gerard has built a strong partnership with the Moolman Group, but while Fourways is situated in Gauteng’s most robust economic hub, much of the surrounding wealth had been flowing elsewhere for years.
“Turning things around hasn’t been easy. However, our reputation for delivering results with brands like Woolworths and Checkers has helped reassure stakeholders.
“We’ve made it clear there’s an opportunity here and that we’re committed to being hands-on. We’ve personally met with every retailer on-site and physically, sharing our vision for the mall’s transformation,” said Holley.
Holley said that turning around such a large mall could not be achieved in six months.
“The timeline for a full turnaround is uncertain — it could take three years if we’re lucky, or we might fill the vacancies within a year. Factors beyond our control, such as the macroeconomic environment and interest rate changes, also play a role.
“When we got involved last year, the vacancy rate was over 20%. Now, thanks to the deals we’ve completed, it’s down to almost 13% in just six months of management by Flanagan & Gerard and the Moolman Group.
“Leading up to December, the mall has experienced double-digit growth. Ultimately, if our tenants are thriving, they’ll spread the word within the retail industry that Fourways Mall is on the upswing,” he said.
Holley said the focus was on transforming the entire experience. One of the key initiatives is the improvement of the entire Fourways district.
“We’ve been in talks with major landlords like Growthpoint and Burstone, emphasising the need to enhance the whole node. The goal is to make it easier for Fourways consumers to navigate, so they don’t have to sit at 10 traffic lights. We’re working with traffic engineers and engaging the municipality to connect those lights and improve traffic flow,” he said.
Accelerate Property Fund CEO Abri Schneider said the measures were aimed at laying the groundwork for the company’s goal of re-establishing Fourways Mall as a leading shopping destination.
The focus was on offering an exceptional mix of retail options in a convenient, safe and engaging environment. “The current vacancy rate provides significant upside potential, especially as the repositioning is starting to gain traction, with several international and local tenants expressing interest,” Schneider said.
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