Accelerate Property Fund, a Real Estate Investment Trust (REIT) listed on the Johannesburg Stock Exchange, has opened the door to a potential disposal of a minority interest in its 50% stake in Fourways Mall, valued at R4.2 billion ($257 million), as South Africa’s listed real estate investment trust continues to reshape its portfolio around its flagship asset.

The Johannesburg Stock Exchange-listed REIT announced on September 28 that it had concluded a new Property, Development and Asset Management Services Agreement with Flanagan and Gerard Frontiers Proprietary Limited and Luvon Investments Proprietary Limited for Fourways Mall, South Africa’s largest super-regional shopping centre.

Accelerate owns half of Fourways Mall, valued at $510.65 million

Accelerate owns 50% of the 179,973-square-metre mall, while Azrapart Proprietary Limited owns the remaining 50%. The mall was valued at R8.4 billion ($510.65 million) as of March 31, 2026, putting Accelerate’s interest at approximately R4.2 billion ($257 million).

The new agreement formalises the appointment of F&G and Luvon as the mall’s property, asset and development managers after the previous agreement lapsed in November 2024.

Since taking over management responsibilities in February 2024, the managers have overseen a reduction in vacancies from 18.8% to 6.6% by August 2026, while tenant turnover increased from R226.3 million ($13.76 million) to R365.2 million ($22.21 million). Average trading density also rose from R1,816 per square metre to R2,711 per square metre over the period.

F&G and Luvon formalise management of South Africa’s largest mall

Under the new agreement, F&G and Luvon will receive property, asset, leasing and development management fees. They will also be entitled to an Upside Participation Fee linked to the mall’s future financial performance.

Crucially, the managers can elect to receive that performance-linked fee through an undivided interest in Fourways Mall rather than cash. This could result in Accelerate and Azrapart transferring part of their respective ownership interests to the managers.

The agreement also grants F&G and Luvon a call option to acquire an undivided interest of up to 15% in the mall, with the purchase price calculated using the property’s net operating income and an 8% capitalisation rate.

Accelerate sells assets as it reduces debt and refocuses
For Accelerate, the potential transaction comes as the company continues a broader restructuring and debt-reduction programme.

Last week, Accelerate agreed to sell KPMG Crescent and its associated parkade in Parktown, Johannesburg, to Rand Mutual Assurance Company for R385 million ($23.45 million). The majority of the proceeds are expected to be used to reduce debt.

On September 16, the company also announced the R630 million ($38.37 million) sale of Cedar Square shopping centre in Fourways, Sandton, sharpening its focus on Fourways Mall.

The new Fourways Mall agreement remains subject to shareholder approval, with Accelerate required to secure the necessary resolution by December 17, 2026. The company said the transaction forms part of efforts to retain experienced management and unlock further value from its most significant asset.