Accelerate Property Fund has issued a pre-close operational update, outlining its ‘significant’ restructuring since June 2024, which includes a R300 million rights offer comprising a concluded R200 million rights offer, a further R100 million rights offer currently under consideration, as well as the disposal of around R1.9 billion worth of assets.

The Fund says that its immediate focus during the period ended 31^st March 2025 was the planning of a further fully underwritten rights offer of R100 million by the 30^th of June 2025 to add to the R200 million rights offer that was concluded in June 2024 to fund additional capex for Fourways Mall as well as for working capital requirements.

Other initiatives included the extension of its debt facilities for 24 months and further property disposals with a total of six assets sold of for an aggregate consideration of R704 million. Of the remaining R1.2 billion in ongoing asset sales, R148.2 million is unconditional and expected to transfer post March 2025. Proceeds from these disposals will be allocated towards reducing debt, it says.

The Fund says that Fourways Mall has demonstrated a strong upwards trajectory, closing the 2025 calendar year with significant gains in leasing, foot traffic, and overall retail performance, reinforcing its growth with a 9.5% increase in total spend compared to the previous year.

“Independent retail experts, Flanagan & Gerard and Moolman Group, have had a significant impact on lease renewals. In addition to attracting new tenants and shoppers to the mall, they have renewed 121 leases totalling a GLA of 46 972m² for an average of 4.2 years,” says Accelerate’s Board, emphasizing that strong letting activity and extensions resulted in vacancies at Fourways Mall reducing from 19% in the prior financial year to 13.4% in the current financial year with new leases, with a combined GLA of 27 515m², having been concluded to date or are in the process of being concluded.

Approximately R144 million in capex has been invested in Fourways Mall by both co-owners, mainly allocated towards enhancing the overall shopping experience.

The Fund’s interest-bearing borrowings reduced significantly by R700 million from R4.4 billion on the 31^st of March 2024 to R 3.7 billion currently due to the settlement of debt through asset disposals and proceeds from the R200 million rights offer during the year under review.

Following its restructuring, which is expected to conclude by late March 2026, Accelerate says a smaller, premium, retail-oriented portfolio will remain with a targeted loan-to-value (LTV) ratio of below 40% and to improve its Interest Cover Ratio (ICR) to 1.6 times.