Accelerate Property Fund is moving ahead with a R100m rights offer, set to open on Monday, despite failing to finalise a crucial settlement agreement that could determine the recoverability of R800m in related-party receivables.
The group said it has yet to finalise a new settlement with Fourways Mall co-owner Azrapart and other related parties after the original agreement fell through last year due to unmet suspensive conditions. While all sides are still at the table, talks remain ongoing, it said in a statement.
“In our assessment, the recoverability of the related-party receivables is contingent upon the successful conclusion of the new agreement. As the agreement has not been finalised, there may be no reasonable prospect of recovering these amounts, and they could therefore be fully impaired in the financial results,” the group said.
Accelerate noted that the rights offer, is a significant step in its restructuring plans, including the turning around of Fourways Mall — its largest and most complex asset — and towards improving working capital. The anticipated 100m capital raise follows a R200m rights offer concluded in June 2024.
Last month, Azrapart was placed in business rescue by the high court in Bloemfontein after defaulting on debt repayments totalling R2.3bn. The application was brought by creditors Rand Merchant Bank and Investec, who argued that Azrapart had missed multiple repayment deadlines.
However, Azrapart has indicated it is appealing against the order.
Colin Strime of Fluxmans Attorneys, acting on behalf of Azrapart, said: “Azrapart is not currently in business rescue. On June 5, 2025, the Bloemfontein high court, under judge [Phillip] Loubser, handed down a judgment placing Azrapart into business rescue. However, Azrapart has since filed an application for leave to appeal that decision.”
Fourways Mall is undergoing a R400m revamp, led by retail specialists Flanagan & Gerard and the Moolman Group. The revamp is meant to reduce vacancies and improve trading conditions at the centre.
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