With billions owed and a UK bailout in limbo, Fourways Mall’s future hangs in the balance

The grand vision of Fourways Mall as Gauteng’s premier shopping destination has hit another major roadblock. Azrapart, the private company that owns half the mall, has officially been placed into business rescue following a ruling by the High Court in Bloemfontein. This comes after two heavyweight lenders, RMB and Investec, hauled the company to court over R2.3 billion in outstanding debt.

The ruling, handed down on 5 June, is the latest blow in a saga marked by financial strain, investor anxiety, and a last-ditch promise of a R2.6 billion capital injection from a little-known UK firm, Redcore Hospitality Holdings.

Cracks in the Empire

Fourways Mall, once hyped as the largest retail centre in South Africa following its R9 billion revamp in 2019, has struggled to deliver on expectations. The mall’s co-owners — Azrapart and the Accelerate Property Fund — poured R400 million more into the complex, with much of that going into compliance-driven improvements like a 6.3 MWp rooftop solar plant.

Yet, even solar panels couldn’t brighten the mall’s financial outlook. Azrapart, controlled via a trust linked to Michael Georgiou, failed to meet its massive loan obligations, prompting RMB and Investec to seek a court-ordered business rescue process as far back as November 2024.

Redcore to the Rescue?

In a last-ditch effort to delay the rescue proceedings, Azrapart argued that salvation was on the way in the form of a R2.6 billion investment from Redcore, a UK-based firm. Georgiou maintained that he had been in “constant contact” with the company and believed the funds were forthcoming.

But the banks weren’t buying it. Through a UK-based law firm, they discovered that Redcore had no recorded turnover in 2023 and no employees, according to Companies House. While Redcore’s lawyers in Luxembourg did confirm access to a €750 million funding facility, they failed to provide the one thing the banks demanded — proof of actual funds or a bank guarantee.

“If Redcore really had the money,” said RMB and Investec, “they could have easily secured a guarantee from a reputable institution.”

From Power Player to Minority Shareholder

Georgiou, once a dominant figure in Accelerate Property Fund, has seen his influence sharply decline. After a forced R57 million share sale by Investec, he now holds just over 4% of the company — down from 29% prior to a R200 million rights issue last year. Though he remains a non-executive director, the decline in his holding has weakened his sway in the fund’s strategic direction.

Meanwhile, Accelerate is pushing ahead with another R100 million rights issue, half of which is earmarked for continued capital expenditure at Fourways Mall. The rest is being used for working capital, a telling sign of the liquidity crunch that still grips the business.

Where to From Here?

Business rescue practitioners Piers Marsden and Lance Shapiro have been appointed to steer Azrapart through its restructuring, with legal costs borne by the company. Their job is to attempt a turnaround assuming, of course, that any viable plan can be drawn up and funded in time.

Locals and property investors alike are watching closely. The Fourways area is home to one of Johannesburg’s most affluent residential communities, and the mall was supposed to be its crown jewel. But foot traffic has underwhelmed since its 2019 relaunch, with many locals lamenting that the layout is confusing and rental prices unsustainably high for tenants.

On social media, reactions have been mixed, some say this was long overdue, while others express concern for what this means for tenants, employees, and even the surrounding community.

A Symbol of the Property Market’s Woes

This collapse isn’t just about one mall or one company. It highlights deeper issues within South Africa’s commercial property sector , where rising interest rates, power costs, and consumer belt-tightening have converged to create a perfect storm. Even properties backed by deep pockets and big names are no longer immune.

With business rescue now underway, the next few months will determine whether Fourways Mall can reclaim its relevance or become yet another cautionary tale of overreach in a tightening economy. For now, the mall’s future, much like the promised Redcore funds remains uncertain.

Fourways Mall’s Fresh Comeback: How SA’s Biggest Mall is Winning Shoppers Again

{Source: IOL}

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