Accelerate sells Cedar Square for R630m as Fourways Mall co-owner trims portfolio
Written on
Listed Accelerate Property Fund has disposed of Cedar Square, its second-largest asset, for R630 million to an entity owned by Big Apple Trust, in a deal that will require shareholder approval.
The co-owner of Fourways Mall, listed Accelerate Property Fund, has disposed of its second-largest asset, Cedar Square, for R630 million to an entity owned by Big Apple Trust. Under Accelerate’s original vision, Cedar Square and Fourways Mall, together with various other properties in the area, were to be the core of its plan for a Fourways ‘node’.
Accelerate describes Cedar Square as a 44,000 square metre regional retail centre anchored by Woolworths, Pick n Pay, Builders Warehouse and Virgin Active, with a sizeable restaurant offering. It has 79 stores, including an underperforming Ster-Kinekor that Accelerate says “continues to trade under pressure”. In its annual report for the year ended 31 March, the fund said the cinema tenant is on a month-to-month arrangement after agreeing to a six-month all-in turnover rental of 8% from 1 March 2026.
The purchaser is paying more than 2% below the centre’s independent valuation of R643.5 million. In the last financial year, Cedar Square generated net operating income of R55.1 million.
The trustee of Big Apple Trust is Panayiotis Michaletos, and the entity wholly owns other property companies including The Guild Property Fund and Zeus Property Company. Following the disposal, Accelerate will retain the development rights to roughly 40,500 square metres by means of a notarial deed of servitude registered in favour of the seller. If the purchaser wants to develop the bulk it will have to acquire the deed from Accelerate; the bulk is currently valued at R168.8 million, and the rights revert automatically to the purchaser, Aristonas (Pty) Ltd, if unused for 10 years after transfer.
Because the disposal equates to more than 30% of Accelerate’s market value of just R773.4 million, the transaction will require a circular to be issued and shareholders to vote on the deal at a general meeting. Accelerate’s last major disposal was Portside Tower in Cape Town, the tallest building in the city.