Accelerate Property Fund advances $117 million restructuring, boosts Fourways Mall after Michael Georgiou’s exit

Accelerate Property Fund, a Johannesburg Stock Exchange-listed Real Estate Investment Trust (REIT), has continued its comprehensive portfolio restructuring program, deploying $116.5 million in targeted capital to enhance core assets, including Fourways Mall, while optimizing its broader retail property portfolio. 

The move follows the exit of founder Michael Georgiou, who parted ways with his longtime board member and former chief executive after shareholders rejected his bid to return to the board.

Capital investments and strategic disposals
Since June 2024, Accelerate has focused on strengthening sustainability, improving profitability, and reducing debt, raising and realizing R2 billion ($116.5 million) in capital and reducing approximately R1.9 billion ($110.56 million) in debt. 

Over the past six months, $116.5 million was allocated to portfolio enhancement, with key initiatives including upgrades to Fourways Mall, active property disposals, reduction of vacancies, and resolution of outstanding related party matters.

Fourways Mall repositioning
Fourways Mall has been a central focus, with Accelerate investing R173 million ($10.07 million) in partnership with Flanagan & Gerard and Moolman Group to improve retail, leisure, and dining offerings. These upgrades have helped reduce vacancy to 9.4% from 16.1% year-on-year, supported by new tenants such as Planet Fitness, Total Ninja, Spur, and Nando’s. Average trading density grew 8.6% and footfall rose 20% in the November 2025–February 2026 period.

Further enhancements include a 6.3MW solar installation, expected to commission in Q3 2026, and a R100 million ($5.82 million) (Accelerate’s R50 million ($2.91 million) share) dining hub, “The View,” which will host premium tenants such as Tashas, The Pantry, Fournos Bakery, Nonna’s Italian Grill, and experiential offerings like Clay Café, complemented by wellness and lifestyle brands Mangwanani Spa and Popsicle Nails.

Portfolio optimization
The Fund’s disposal program remains a key lever, with R795.8 million ($46.29 million) in assets transferred since April 2025, and an additional R378 million ($22 million) expected post-year-end. Portfolio vacancy has fallen to 9.2% from 17.6%, while weighted average lease expiry stands at 3.7 years. Key leases, including KPMG sites, are being aligned to market rates, and targeted reletting is underway for Oceana House, expected to affect vacancy by approximately 2.6% if unfilled.

Governance and leadership
During the year, APF finalized outstanding related party matters, settled its Covid-19 business interruption claim of R82.5 million ($4.8 million), and made board changes, including the appointment of James Templeton as Chairman and Donnovan Pydigadu as Lead Independent Director. The exit of Michael Georgiou, whose reappointment was rejected by over 97% of shareholders, marks a strategic leadership transition for the Fund.

Accelerate’s ongoing restructuring, combined with capital investment in Fourways Mall, leasing momentum, and asset disposals, is expected to strengthen interest cover and enhance earnings quality. While Oceana House and KPMG lease adjustments may temporarily pressure results, the Fund is engaging debt funders for covenant relief and remains focused on building a resilient, sustainable retail portfolio.