Accelerate In Talks To Sell Cape Town's Tallest Building, Four Other Properties
- Accelerate Property Fund is negotiating the sale of five properties, including Portside Tower, to reduce debt and recover from financial strain.
- Recent asset sales raised R564 million 30 million to reduce debt, with further transactions expected to improve interest coverage by February 2025.
- Michael Georgiou reduced his stake in Accelerate from 29 to 21 in May 2024 due to financial obligations and a forced sale by Investec.
Accelerate Property Fund , a Johannesburg Stock Exchange JSE listed Real Estate Investment Trust REIT, partly owned by South African real estate mogul Michael Georgiou, is negotiating the sale of five properties in a bid to recover from financial strain, particularly from its troubled Fourways Mall, and reduce debt.
The five properties under negotiation for sale include the iconic Portside Tower, Cape Towns tallest building, as well as Buzz and Waterford Shopping Centres, Oceanaheadquarters of the Oceana Group in the Foreshoreand the adjacent Thomas Pattullo building.
These properties were reclassified from investment properties to non-current assets held for sale in Accelerate's financial results for the six months ending Sept. 30, 2024 . The properties' value has been adjusted to fair value less the cost to sell, in line with the ongoing negotiations and the willing buyer, willing seller principle.
Accelerate reduces debt through strategic salesAccelerates portfolio includes premium properties with long-term leases and strong tenants, such as Cedar Square, The Buzz, Waterford, BMW Fourways, and 50 of Fourways Mall. Recent asset sales, including 9 and 10 Charles Crescent, Brooklyn Place, Eden Meander Shopping Centre, and 610 Voortrekker Road in Brakpan, raised R564 million 30 million to reduce debt.
The fund also transferred 89 and 99-101 Hertzog Boulevards, reducing debt by R69.8 million 3.78 million. Sales of Pri-movie Park and 1 Charles Crescent are complete, pending Competition Commission approval. Beacon Isle, Valleyview, and Cherry Lane sales are finalized, with transfers expected by February 2025. Proceeds will further reduce debt and improve interest coverage.