Disappointing Accelerate fails to rev engines
Execs splash out on shares but analysts warn few will follow
Accelerate Property Fund has disappointed investors. While development groups have been under pressure in South Africa owing to a very weak economy and extremely low business and consumer confidence, Accelerate, which is a real-estate investment trust and therefore pays regular dividends, has stood out as a dud. The company, whose flagship asset is Fourways Mall, has not yet delivered on its promises. Some eyebrows have also been raised about Accelerate CEO Michael Georgiou's choice to keep a low profile as the head of a listed company. Georgiou usually does not interact with investors. Instead, chief operating officer Andrew Costa meets the media and investors. He is also the son of controversial real-estate mogul Nic Georgiou, the Bloemfontein-based property developer. Nic Georgiou and the property management company he founded, Orthotouch, could face a class action suit for failing to pay back money to some investors of failed property syndication schemes worth about R4.6-billion...
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