However, the new PMA moves to regularise the appointment. <\/p>\n\n\n\n
The new PMA is largely the same as the old one<\/strong><\/a>: F&G and Luvon, as joint managers, will oversee day-to-day operations, tenant relations, and general property administration for the mall.<\/p>\n\n\n\n They will also be involved with strategic portfolio optimisation, tenant mix strategy, driving footfall and trading densities, and implementing sustainability programmes.<\/p>\n\n\n\n According to Accelerate, the co-managers have already vastly improved the performance of Fourways Mall, and are expected to continue doing so.<\/p>\n\n\n\n Since taking over management, Fourways Mall has seen:<\/p>\n\n\n\n Going forward, the managers are expected to continue reducing vacancies, drawing new tenants, improving trading densities and installing a 6.3MW solar installation as part of a broader sustainability push.<\/p>\n\n\n\n The new PMA comes into effect retroactively from February 2024, when the managers were appointed, regularising the failings of the previous agreement.<\/p>\n\n\n\n As a 5-year agreement, it is expected to terminate in February 2029 unless extended by the parties.<\/p>\n\n\n\n The new PMA also carries the same remuneration and reward conditions as the old one, which includes the potential shift in shareholding.<\/p>\n\n\n\n Upon termination, Fourways Mall’s share ownership could shift significantly, with F&G and Luvon potentially becoming shareholders of up to 15% of the mall.<\/p>\n\n\n\n Under the PMA, the compensation for the joint managers is structured into ongoing monthly service fees, a performance-based fee upon contract termination, and an equity call option.<\/p>\n\n\n\n At the end of the contract, the managers are entitled to a performance-based fee, payable at the managers’ choice either in cash or as an undivided equity share in Fourways Mall.<\/p>\n\n\n\n The managers will also have the option to buy an additional undivided share, capped at 15%, in Fourways Mall.<\/p>\n\n\n\n Accelerate currently owns a 50% undivided share in Fourways Mall, valued at R4.2 billion, representing 50% of the R8.4 billion total valuation, with the remaining 50% held by co-owner Azrapart Proprietary Limited. <\/p>\n\n\n\n If the managers opt for the share option, the disposal of the minority interest will be split equally between the current co-owners of the mall (Accelerate and Azrapart).<\/p>\n\n\n\n If the agreement is terminated before February 2029, the managers are guaranteed certain payouts. <\/p>\n\n\n\n This ranges from R130 million if terminated in the third year to R150 million if it is terminated in the fifth year.<\/p>\n\n\n\n Notably, while the new agreement has been formally entered into, it has not yet been approved by shareholders.<\/p>\n\n\n\n Shareholder approval remains an outstanding suspensive condition of the agreement, which must be fulfilled by 17 December 2026.<\/p>\n\n\n\n While the vote has not yet taken place, Accelerate has secured an irrevocable undertaking from a shareholder holding 50.7% of voting shares to vote in favour the PMA.<\/p>\n\n\n\n Accelerate said it has the right to cancel the new PMA on 3 months\u2019 notice to the managers if shareholders resolve to cancel the agreement by way of a majority of votes. <\/p>\n\n\n\n However, to the extent that the PMA is cancelled in this manner, the managers will still be entitled to their fees and to exercise the call option for 15% of the mall.<\/p>\n","protected":false},"excerpt":{"rendered":" Accelerate Property Fund has entered a new agreement with the managers of Fourways Mall for a possible slice of ownership.<\/p>\n","protected":false},"author":10,"featured_media":814523,"comment_status":"open","ping_status":"closed","sticky":true,"template":"","format":"standard","meta":{"_sma_x_autopost_status":"posted","_sma_x_autopost_error":"","_sma_x_post_id":"2104557244142477584","_sma_facebook_post_id":"191437357620492_2219504798869919","_sma_instagram_post_id":"18631004320011360","_sma_x_attempts":1,"footnotes":""},"categories":[12755],"tags":[19940,19746],"class_list":["post-877200","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-property","tag-accelerate-property-fund","tag-fourways-mall"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/877200","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=877200"}],"version-history":[{"count":4,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/877200\/revisions"}],"predecessor-version":[{"id":877276,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/877200\/revisions\/877276"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/814523"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=877200"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=877200"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=877200"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}\n
of Cedar and Witkoppen Roads.<\/li>\n<\/ul>\n\n\n\nThe new agreement<\/h2>\n\n\n\n
![\"\"](\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/05\/Fourways-Mall-1024x576.jpg\")
<\/a><\/figure>\n\n\n\n