The asset and property managers of Fourways Mall, Flanagan & Gerard (F&G) and Luvon, have been granted a call option to acquire up to 15% in the property from co-owners Accelerate and Azrapart, an entity controlled by Michael Georgiou. This development is part of a new property, development, and asset management services agreement. The agreement was made possible after Azrapart collapsed into business rescue in June 2025, allowing for direct engagement with business rescue practitioners.
F&G and Luvon were originally appointed in February 2024 but faced setbacks when certain conditions were not fulfilled, causing the initial agreement to lapse. Despite this, they continued to provide services on site. The new agreement includes a call option for the managers to acquire a stake, pending shareholder approval for their appointment. Georgiou ceased to be a director of Accelerate in October 2025, further paving the way for the new agreement.
Under F&G and Luvon's management, Fourways Mall has experienced a significant turnaround. The mall, which spans 179,973m², had considerable vacancies prior to their appointment. However, vacancies have decreased from 18.8% in February 2024 to 6.6% in August 2026. Tenant turnover has improved by 61%, rising from R226.3 million to R365.2 million over the same period. Trading densities have also increased from R1,816/m² to R2,711/m².
The improvement in the mall's performance is attributed to increases in visitor metrics, including footfall, vehicle count, and dwell time. Foot counters were first installed in September 2024, providing valuable data for the management team. These metrics have driven the growth in tenant turnover and trading densities. The management's strategies have effectively revitalized the mall, making it a more attractive destination for tenants and shoppers.
A significant addition to the mall is the recent opening of The View, a R100 million luxury lifestyle food offering. This new wing introduces a much-needed convenience, food, and restaurant offering to the mall. Tenants include The Pantry, tashas, Fournos Bakery, Nossa Casa, Clay Café, and George's Grill. Co-working space Workshop 17 has also taken up space and will open its fifth location in Johannesburg in this part of the mall.
The success of the mall's turnaround has led Accelerate and the business rescue practitioners to agree on the importance of regularizing the appointment of F&G and Luvon as asset and property managers. The call option allows the managers to participate in the upside going forward. Additionally, an "upside participation fee" has been introduced to protect the managers in case their services are terminated before their five-year contract is up.
The new agreement includes a performance hurdle that ensures normalised net monthly collections do not drop below a minimum level, set at R15.6 million for the first year, with annual increases. This condition aligns the interests of all parties involved and ensures the continued growth and success of Fourways Mall. The collaboration between Accelerate, the business rescue practitioners, and F&G and Luvon aims to unlock the full potential of the mall and create additional value for shareholders.
Key points
- Fourways Mall's vacancy rate has decreased from 18.8% to 6.6% under F&G and Luvon's management.
- Tenant turnover has improved by 61% since F&G and Luvon's appointment.
- The new agreement includes a call option for F&G and Luvon to acquire up to 15% in the property.
