R60 million shopping mall for sale in South Africa

 ·11 Jun 2024

The Accelerate Property Fund (APF) has announced that it will sell one of its mall assets, the Cherry Lane Shopping Centre for R57 million.

Cherry Lane Shopping Centre is located on the well-known Brooklyn Circle in Pretoria, close to Brooklyn Mall.

The group acquired the mall in 2013, and it was valued at R65 million at the end of September 2023.

Its value has dropped to around R60 million at the end of March 2024.

APF previously tried to sell the mall for R65 million in 2023, when it was valued at around R70 million. It tried again in March 2023, but that deal also fell through.

Accelerate said that it has now entered into a sale agreement with a group called QSPACE.

As with previous sale attempts, the group said it plans to use the full proceeds of the sale to reduce its debt and reinvestment into its core property portfolio.

“This decision was made as part of Accelerate’s ongoing efforts to review its assets and ensure that they align with the company’s current business strategy and growth plans,” it said.

Accelerate is the 50% owner of South Africa’s biggest mall, Fourways Mall, which is contributing to significant financial problems for the group.

Its latest results for the interim period ended 30 September 2023, the group said that vacancies at the mall increased from 14,349 sqm in March 2023 to 15,109 sqm in the reporting period.

The group is moving ahead with a R200 million rights offer in a bid to raise funds from shareholders to address its finances while focusing on restoring its core operations.

This includes a renewed focus on Fourways Mall and facilitating improvements through a strategic asset manager to draw traffic back to the retail centre.

The Fourways Mall co-owners have also revealed the targeted strategy to reestablish it as a top-tier shopping destination.

The strategy will offer a mix of retail options within a convenient, safe, and engaging environment. It includes:

  • Improved signage for easy navigation.
  • Introducing new tenants.
  • Deploying full backup power solutions and exploring energy alternatives.
  • Enhanced parking area lighting and upgraded security measures.
  • Optimise traffic flow and make parking bays bigger.
  • Revitalise the surrounding area, with attention to taxi services, hawkers, landscaping, and traffic light systems.

Read: ‘Landmark’ precinct up for auction in South Africa – including its own shopping mall

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