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Accelerate Property Fund, a Johannesburg Stock Exchange-listed Real Estate Investment Trust (REIT) partly owned by South African property mogul Michael Georgiou, has agreed to sell the Buzz Shopping Center and Waterford Center in Fourways, Gauteng, for a combined R215 million (about $12.2 million).
Sale details and financial impact
The sale is part of Accelerate’s effort to restructure its portfolio. The properties will be acquired by Dorpstraat Capital Growth Fund and Property House Group Investments in equal undivided shares.
The transaction is structured as a letting enterprise disposal, with Accelerate expecting net cash proceeds of roughly R150 million ($8.47 million) from the Buzz Centre and R65 million ($3.67 million) from the Waterford Centre. The sale will take effect upon registration of the properties in the purchasers’ names.
The Buzz Centre, spanning 14,148 m², had a weighted average rental of R176/m², while the 6,869 m² Waterford Centre averaged R153/m². The disposal yield for the centres stands at 9.5 percent, reflecting the agreed exit of Pick n Pay as anchor tenant at the Buzz Centre.
Debt pressures and impairment losses
The sale will provide Accelerate with much-needed liquidity to reduce its debt, closely tied to Georgiou’s network of affiliated businesses and stabilize operations in a challenging property market.
In June 2025, Georgiou’s firm Azrapart was placed under business rescue by the High Court in Bloemfontein after FirstRand Bank and Investec Bank, collectively owed R2.3 billion ($128.4 million), applied for the move. Georgiou is the sole director of Azrapart.
The financial troubles of Georgiou’s entities have directly affected Accelerate. In 2024, the REIT entered a settlement agreement with Georgiou’s related entities to offset balances due, but the deal fell through, leading to an impairment of R970.7 million ($53.8 million) in Accelerate’s financial statements for the year ending March 31, 2025. The unresolved debts contributed to a reported credit loss of R1.05 billion ($58 million) for the year.
Restructuring and future outlook
Accelerate Property Fund is selling the Buzz and Waterford Centres to cut debt and improve liquidity. The properties generated a combined net operating income of R28.7 million ($1.6 million) for the year ending March 31, 2025, despite broader market pressures.
Georgiou, an Accelerate board member, has faced pressure to address financial challenges linked to his broader property dealings in recent times. His stake through Azrapart has fallen below 5 percent amid mounting debt obligations.
