Hyprop Investments, South Africa's largest listed specialised shopping centre Real Estate Investment Trust (REIT), has published an operational update for the five months ending May 31, 2024, noting steady progress in meeting its FY2024 strategic objectives, marked by key acquisitions and portfolio enhancements.
Hyprop successfully acquired Table Bay Mall near Blouberg, in March for R1.6 billion, expanding its footprint in the Western Cape.
Additionally, the company has received internal approvals to expand Somerset Mall by an additional 5,400m² of GLA. Somerset Mall is a 69,000 m² shopping mall situated alongside the N2 freeway, serving towns that have seen an influx of semigrants in recent years, including Somerset West, Stellenbosch, Gordon's Bay and Strand, in the Western Cape province of South Africa.
Hyprop’s overall operational performance has seen significant improvement, attributed to its repositioning strategy in South Africa (SA), effective tenant mix, and increased footfall across SA and Eastern Europe (EE) portfolios.
South Africa Portfolio Highlights (to May 31, 2024):
Foot Count: Increased by 5.7% year-on-year.
Tenant Turnover: Rose by 2.1% year-on-year.
Vacancy Rate: Stood at 1.7% (1.9% including Table Bay Mall).
Notable Developments in Key Malls:
Canal Walk: Introduced Freedom Adventure Park and welcomed several new tenants and refurbishments, including Turkish Doner Haus and enhanced stores for Bride & Co and New Balance.
CapeGate: Added iStore and announced the upcoming opening of Bootlegger Coffee in September 2024. Undertook refurbishments for Ocean Basket, Clicks, and others.
Clearwater Mall: Saw new openings including Under Armour and Sorbet Hair Bar, along with relocations and refurbishments.
Hyde Park Corner: Secured a 10-year lease with Workshop 17 for its North Office Tower and signed agreements for a new five-star hotel by Tsogo Sun.
Rosebank Mall: New tenants include Edgars and the Rosebank Management District, with Ribz N WingZ and WaxIt set to open in July 2024.
Somerset Mall: Opened new stores and concluded leases with Steve Madden and Samsonite, with plans for a major expansion to enhance its offerings.
Table Bay Mall: Post-acquisition efforts include installing solar and backup power, optimizing tenant mix, and improving parking income.
Other Malls: The Glen and Woodlands Boulevard also welcomed new tenants and underwent various enhancements.
Hyprop said its balance sheet remains robust, with a healthy liquidity position. The acquisition of Table Bay Mall was financed utilising R500 million of available cash, R250 million of revolving credit facilities and R900 million raised through the issue of two unlisted bonds.
Share in Hyprop are down a little over 2% in the year to date.
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