Accelerate Property Fund reports significant credit losses and strategic disposals

ACCELERATE Property Fund (APF), which has Fourways Mall as the flagship in its portfolio of retail, office and industrial properties, has massively increased its credit losses to R1.05 billion due to the impairment of a related party agreement of R970.7 million.

- EDWARD WEST

In the results for the year to March 31, rental income fell by 5.7% to R824.04m. Net property income was down by 8.3% to R494.74m.

Including the expected credit loss, the taxed loss increased 103.2% to R1.27bn from a R624.74m taxed loss a year before.

The big impairment related to a settlement agreement entered into in November last year, between APF and co-developer of the mall, Azrapart, that had lapsed due to suspensive conditions not being fulfilled in the requisite timeframe.

Last month, Azrapart was placed into business rescue by the High Court in Bloemfontein, following an application by FirstRand’s RMB and Investec, but Azrapart is appealing the ruling.

Other parties to the agreement are the trustees of the Michael Famil Trust; and Accelerate’s former CEO Michael Georgiou, who also controls Azrapart.