Small-cap real estate investment trust (Reit) Accelerate Property Fund has confirmed the disposal of a plot of land near its flagship Fourways Mall.
The offloaded property by the debt-laden property counter is also home to the BMW Fourways dealership on the corner of Witkoppen and Cedar Road, in the north of Johannesburg. It was sold for R174 million.
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The property, spanning approximately 34 725 square metres, is the latest sale by the Reit in another attempt to revive its financial fortunes. However, the sale was at a discount, as the price of the property is below its last valuation of R180 million.
Accelerate said this week that it had entered into a sale of letting enterprise agreement with CFAO Mobility Properties Proprietary, owned by Toyota Tsusho Corporation.
The proceeds of the disposal are set to go towards reducing the Reit’s debt.
By the end of March 2026, the owner of Fourways Mall had successfully raised R2 billion in capital to deleverage its balance sheet, as part of its multi-year restructuring plan. It has a current market capitalisation on the JSE of just over R1 billion.
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Other non-core properties that the company has cut loose to pay off its debt include a number of office properties in Cape Town and Joburg.
It had intended to dispose of the Bosveld Bela Bela Shopping Centre in Limpopo but the transaction, worth R88 million, was cancelled in May 2026 after Morsim Developments Properties pulled out of the agreement.
Accelerate said the effective date of the transaction will be the date of registration of BMW Fourways into the name of CFAO. The purchase consideration will be paid in cash against registration of transfer of the property.
The net operating income (excluding straight-lining rental income adjustments) of the property for the 12-month period ended 31 March 2026, was R11 million, making the disposal yield 6.4%.
No dividends for FY 2026
Meanwhile, in an Sens update on Friday for the year ended 31 March 2026, the group said it would not be declaring a distribution for the year.
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This was taking into consideration, among others things, the working capital cash flow forecast, expected working capital requirements and capital expenditure requirements.
The distributable earnings for this reporting period is expected to be between R40 million and R47 million, the equivalent to between R1.96 and R2.31 on a per share basis, when compared to the distributable loss of R3.97 per share in the 2025 financial year.
No dividends were declared for the year ended 31 March 2025.
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The group’s share price has seen a slide 15% for the year to date, and fell almost 4% on Friday following the trading statement on Sens and the announcement of its latest property disposal.