Fourways Mall has seen an improvement in its trading metrics and tenant demand —with vacancies falling to 9.4% as at end-February from 16.1% in the prior year —signalling a solid recovery in leasing momentum.
Since the appointment of Flanagan & Gerard and the Moolman Group in 2024 to upgrade and manage the mall, about R346m — including R173m from Accelerate Property Fund — has been invested to reposition the centre. The upgrades were to enhance its retail and leisure offering, Accelerate said in an operational update for the year to end-March.
Accelerate owns half of the mall, with the rest belonging to Azrapart, which is now in business rescue.
“The investment is boosting operating metrics and tenant demand, supported by a broader tenant mix, including Planet Fitness, Total Ninja, Spur and Nando’s. Vacancy is expected to fall further to about 5% by September,” the group said.
Trading performance continued to strengthen, with average density up 8.6% year on year for the 12 months to end-February, alongside a 20% year-on-year rise in footfall between November and February.
Mall upgrades
The group is enhancing the mall’s appeal with a R100m investment — half funded by Accelerate — to upgrade retail, dining and leisure offerings, aiming to boost footfall, trading performance and overall yield.
Its debt restructuring has gained traction since June 2024, with a R300m rights offer and about R1.7bn in asset disposals reducing debt and improving sustainability. Together, these actions have raised a total of R2bn in capital, while cutting debt by about R1.9bn.
Accelerate is also proceeding with its broader energy resilience strategy to strengthen sustainability across its portfolio, with a 6.3MW solar installation under way and commissioning now expected in the third quarter of 2026 after standard regulatory approvals.
Accelerate said it is disposing of noncore assets to streamline its portfolio, reduce debt and improve overall capital efficiency, with several high-value transfers already concluded and more expected after year-end.
Other properties earmarked for disposal include The Buzz and Waterford, Beacon Isle and Valleyview, Bosveld Bela Bela, and vacant land behind The Buzz.
The group expects pressure on its earnings due to upcoming lease expiries and rental reversions, as properties such as Oceana House and the KPMG offices will either be vacant or have rents reset to present market levels.
Looking ahead, the group is advancing its restructuring strategy, with focused investment in Fourways Mall, sustained leasing momentum and ongoing disposals set to strengthen earnings quality and lift the fund’s interest cover ratio, it said.
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