Big changes at South Africa’s largest shopping mall
There are numerous changes at Fourways Mall, including increasing its retail offerings, improving parking, and enhancing traffic flow in the area.
These changes form part of the shopping centre’s transformation with strategic enhancements and new retail experiences.
This transformation is aimed at improving Fourways Mall’s financial situation, which has become a serious problem for its owners.
Fourways Mall has experienced a challenging few years, with a high vacancy rate and declining fair value.
From 2021 to 2023, Fourways Mall’s vacancy rate increased from 3% to 8%, a trend which seems to have continued.
As a result, Fourways Mall’s net rent per square meter has significantly deteriorated – from R298 in 2020 to R262 in 2023.
The net rent refers to the income the company generates from the property after all property expenses are deducted.
Even more striking is that Accelerate’s latest financial results revealed that its gross rent, before expenses, for 2024 was R223, much lower than its 2023 net rent of R262.
Fourways Mall’s high vacancy rate and declining rent per square meter have caused the property’s value to decline significantly.
Since the 2020 financial year, the first reporting period since the mall expansion, the mall has suffered several downward fair value adjustments.
Asset fair values are reduced when performance suggests they are worth less than what is reported in the company’s books.
Accelerate Property Fund, which owns 50% of Fourways Mall, has been forced to reduce the value of its stake from a value of R4.8 billion to R3.9 billion today in four years.
The mall’s challenges have also significantly impacted Accelerate Property Fund revenue over the last four years.
Accelerate’s total revenue has experienced a continuous downward trend since the mall opened its doors.
From 2019 to 2024, the property manager has seen its revenue tumbling from R1.2 billion to only R819 million.
Over the last five years, Accelerate has recorded significant losses that have placed tremendous pressure on the company.
Fourways Mall turnaround strategy
Fourways Mall’s poor performance has called for big changes, which resulted in an extensive investment to improve its prospects.
It appointed Flanagan & Gerard Group and Moolman Group as strategic asset managers and property managers.
It has significantly increased its retail offerings over the past six months, introducing 9,642 square meters of new brands.
The new tenants and upgraded stores include Yokico, Legends Barber, Boa Beauty, Valora Jewellery, Perfume Gallery, and Crazy Store.
Other big names are Mr Price Home, Nedbank, Truewood Furniture, Sheet Street, Miladys and Incredible Connection.
Fourways Mall also invests substantially in infrastructure and technology to enhance customer convenience and experience.
Noteworthy upgrades include installing energy-efficient lighting across all parking levels, creating brighter and safer environments for shoppers.
The mall has also improved the lighting in key areas, such as the food court and truck delivery tunnel, creating a more welcoming atmosphere.
Fourways Mall has upgraded its northern parking deck at the entertainment entrance. It features four additional traffic lanes, two for entry and two for exit.
Enhancements include improved traffic flow, better lighting, clearer signage, and a colour identity for each level.
The mall further introduced VIP parking area with wider bays, enhanced lighting, and easy access to popular tenants like Woolworths.
Last week, Fourways Mall announced that six key traffic lights in its vicinity will be connected to its backup power supply.
It will also install Uninterruptible Power Supply (UPS) systems to ensure seamless operation and cover any immediate power drops.
The connection process, which involves the Gauteng provincial government and the Johannesburg Road Agency, is in its final stages.
Traffic in the area has been a problem, and Fourways Mall expects these changes to significantly improve traffic flow.
