Cherry Lane Shopping Centre in Pretoria is facing significant headwinds. Once a thriving retail hub, the mall’s value has plummeted, and its vacancy rate has surged to an alarming 52.3%.
Accelerate Property Fund (APF), the owner since 2013, recently announced a sale agreement for just R54 million—a stark drop from its peak valuation of R122 million in 2018. What went wrong, and what does the future hold?
The Decline of Cherry Lane
The numbers tell a grim story. In 2014, Cherry Lane generated R83/m² in net rental income. By 2020, that figure had halved. The pandemic accelerated its struggles, but the decline had already begun. Today, the mall’s weighted average rent sits at R43.77/m², with net property income at just R3.59 million.
Vacancy rates are the most pressing issue. At 52.3%, more than half the mall’s 11,429 m² gross lettable area stands empty. High vacancies create a vicious cycle—fewer tenants mean less foot traffic, making it harder to attract new businesses.
Failed Sales and New Buyers
APF has tried—and failed—to sell Cherry Lane Shopping Centre multiple times. A R65 million deal fell through in 2023. Another attempt in March 2024 collapsed. Even a June 2024 agreement with QSPACE for R57 million didn’t materialize. Now, Bellerose Investments and Scarlet Sky Investments are stepping in, acquiring a 50% stake each for R54 million.
The sale proceeds will help APF reduce debt, but the bigger question remains: Can the new owners revive Cherry Lane Shopping Centre?
Comparing Cherry Lane to Other Malls
Fourways Mall, also owned by APF, has a 15.9% vacancy rate—high, but nowhere near Cherry Lane’s 52.3%. The contrast highlights how severely the Pretoria mall has underperformed.
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What’s Next for Cherry Lane Shopping Centre?
The new owners face an uphill battle. Reviving a struggling mall requires strategic tenant mix, better marketing, and possibly a rebrand. If successful, Cherry Lane Shopping Centre could reclaim its place as a key Pretoria retail destination. If not, it risks fading into obscurity.
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