Accelerate Property Fund,partly Owned By Michael Georgiou, Faces 44.8 Million Impairment Amid Fresh Deal

Accelerates settlement deal collapsed, raising the risk of a 44.8 million impairment amid unresolved negotiations with entities tied to co-owner Michael Georgiou.

Despite uncertainty, the REIT launched a 5.57 million rights issue to upgrade Fourways Mall and support working capital, following a similar 11.1 million raise in 2023.

Georgious firm Azrapart is under business rescue, with courts questioning its solvency, while he sold a 3.1m stake in APF to settle personal debt.

Accelerate Property Fund , a Johannesburg Stock Exchange JSE-listed Real Estate Investment Trust REIT partly owned by South African property magnate Michael Georgiou, is staring down a potential R800 million 44.8 million impairment as talks stall over a key settlement agreement linked to its crown jewelFourways Mall.

The firm, which announced the lapse of a crucial debt-restructuring agreement with related entities controlled by Georgiou, is still scrambling to finalize a new deal. At stake is nearly R800 million 44.77 million owed to Accelerate by entities including Azrapartthe Georgiou-owned vehicle that holds a 50 percent stake in Fourways Mallas well as the Michael Family Trust and the Fourways Precinct development.

While both parties have expressed willingness to sign a replacement agreement, Accelerate said in a statement dated July 11 that the new deal remains unsigned, and that recoverability of the receivables is now in serious doubt.

Despite the uncertainty, Accelerate opened a R100 million 5.57 million rights offer on July 14, aimed at funding improvements to Fourways Mall and bolstering the companys working capital. The opening of the rights offer is an important step in our restructuring efforts, the company said.

The new capital raise follows a similar R200 million 11.1 million rights issue in 2023, underscoring ongoing liquidity pressures. Shareholders have been warned to consider both potential outcomes of the stalled agreementeither a revival under similar terms or a full write-down of the debt, which would have material consequences for APFs financials.