Accelerate Property Fund has inked a R215m deal to dispose of two retail assets in Fourways, Gauteng as part of its efforts to clean up its balance sheet and restructure its portfolio.
The real estate investment trust (Reit) announced on Tuesday that it had struck a sale-of-letting enterprise agreement with a consortium led by Dorpstraat Capital Growth Fund and Property House Group Investments.
The buyers — who include Rabie Property Group, Nedbank Property Partners and Alpha Plus — will acquire The Buzz Shopping Centre and Waterford Centre in equal, undivided shares.
The deal is subject to approval by the Competition Commission.
The disposals come as the Reit is shedding noncore or underperforming assets to reduce debt and bolster margins in a high-interest rate environment, the group said.
The Fourways mall owner will receive R200m upon transfer of the properties, with an additional R15m payable subject to the fulfilment of planning-related conditions. The Buzz Shopping Centre was sold for R150m and Waterford Centre fetched R65m. Both values align with the company’s most recent internal valuations, it said.
“The transaction forms part of Accelerate’s ongoing strategic repositioning and restructuring programme,” the group said.
The Buzz, which covers just over 14,000m² in rental space, recently lost Pick n Pay as its anchor tenant — a development that affected expectations for future income. Waterford is smaller at about 6,800m² and is generating average rentals of R153/m2.
According to the group, the disposal will yield a forward return of 9.5%, excluding straight-lining adjustments, based on anticipated income from April 2025. Accelerate reported net operating income of R20.8m from The Buzz and R7.9m from Waterford in the 2025 financial year.
In its results for the year ended June, the group reported a 5.7% decline in rental income to R824m while net property income fell 8.3% to R494.7m.
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