Accelerate Property Fund, a newly formed retail-focused property fund, said on Thursday it intended to list on the JSE on December 12 under the Real Estate Holdings and Development sector. 

The offer comprised a private placing by Accelerate by way of an offer for the subscription of up to 480-million shares in the share capital of Accelerate, subject to a minimum subscription amount of about R2.047-billion being achieved, of which about R1.810-billion had already been secured – pursuant to irrevocable subscription commitments – and a further R300-million had been underwritten.

Accelerate nonexecutive chairperson Tito Mboweni said the fund was excited by the listing on the JSE and was extremely encouraged by the interest and support shown by investors.

“Accelerate presents a unique opportunity for investors to gain exposure to the highly defensive retail sector. With our experienced management team, high-quality premier portfolio, strong corporate governance and value creation strategies to support future growth, we believe we are well positioned for this next stage in the life of Accelerate,” he noted.

Accelerate would be classified as a real estate investment trust upon listing, formed for the purpose of investing in direct real estate for purposes of income generation and capital growth. It currently had a portfolio of 51 “well-established, high-quality” properties across South Africa, including ownership of two regional shopping centres, with “exciting growth prospects” including the right to own 50% in a super-regional centre upon completion, added Accelerate.

The fund’s property portfolio was valued independently at over R5.9-billion and comprised a total gross lettable area of 440 520 m², consisting of 67% retail space, 22% office space, 7% industrial space and a 4% specialised auto dealership component.

Accelerate intended to maintain a strong retail bias, offering investors direct exposure to high-quality retail centres and other prime properties in South Africa.

Accelerate CEO Michael Georgiou said the funds raised through the listing would provide Accelerate with the resources it needed to continue to strengthen its balance sheet and make investments in new development opportunities, refurbish existing locations and uplift certain properties.

“The timing of the listing places Accelerate in an ideal position to capitalise on the future development of the Fourways node – one of the fastest growing and most densely populated areas in Johannesburg. These are all key components that will drive our future growth and allow us to enhance value and support longer-term income and capital growth,” he explained.