SHARE PRICE PLUNGES
Fourways takes a bite out of Accelerate's income
The property fund has focused on developing the Gauteng suburb of Fourways into a business and lifestyle node
Accelerate Property Fund’s share price plunged 7.69% to R6 on Wednesday after the group said its income growth was expected to be flat for two years, owing to costs related to its multibillion-rand Fourways shopping-centre expansion. Accelerate’s focus has been on developing the Gauteng suburb of Fourways into a business and lifestyle node that can compete with Sandton and the growing Waterfall precinct. Chief operating officer Andrew Costa said after the release of the company’s financial results for the year to March that his company’s Fourways assets, including the shopping mall and other buildings, would be 200,000m² by the end of next year. The major part of the node is the R2.6bn Fourways Mall, which is being doubled in size from 90,000m² to 170,000m². Accelerate’s Fourways Precinct assets including the mall, account for 175,563m² of size. Accelerate grew its dividend payout 7.3% in the year to March, but Costa said dividend growth would be flat for the next couple of years. "...
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