Accelerate sells Buzz and Waterford centres to cut debt

Accelerate Property Fund Limited has agreed to sell The Buzz Shopping Centre and Waterford Centre in Fourways, Gauteng, for an aggregate consideration of R215,000,000 (exclusive of VAT). The purchasers are Dorpstraat Capital Growth Fund (Pty) Ltd and Property House Group Investments (Pty) Ltd. This transaction aligns with Accelerate's ongoing strategic repositioning and restructuring programme, with the proceeds intended for debt reduction.

The purchase consideration includes an initial cash payment of R200,000,000 upon registration of transfer, with an additional R5,000,000 payable for approved building plans for Waterford and R10,000,000 for the rezoning of part of The Buzz. The Buzz Shopping Centre is valued at R150,000,000, with a gross lettable area (GLA) of 14,148 m², while Waterford Centre is valued at R65,000,000, with a GLA of 6,869 m².

The transaction remains subject to unconditional Competition Authority approval. The net operating income for The Buzz and Waterford for the year ended March 31, 2025, is approximately R20.8 million and R7.9 million respectively. The disposal yields 9.5% based on a one-year forward net income from April 1, 2025. This disposal is classified as a Category 2 transaction under JSE Listing Requirements and does not require shareholder approval.