http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.32Change: -0.11
R/$ = 11.14Change: -0.08
Au 1221.15 $/ozChange: 3.89
Pt 1332.00 $/ozChange: 0.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Mar 02, 2009

Hyprop expects up to 8% distribution growth in 2009

Back
Cape Town|Johannesburg|Hyprop|Property Development|Standard Bank|R179-million Southern Sun Hotel|Building|Property Development|Retail Assets|Hyprop|Laurence Cohen|Michael Aitken|Pieter Prinsloo
|Property Development|||Building|Property Development||
cape-town|johannesburg|hyprop|property-development-company|standard-bank|r179-million-southern-sun-hotel|building|property-development|retail-assets|hyprop-person|laurence-cohen|michael-aitken|pieter-prinsloo
© Reuse this



Property loan stock company Hyprop expects to see good growth in 2010, despite the property market “entering a period of lower distribution growth”.

The company, which reported a 14,1% growth in its total distribution for the year ended December 31, 2008, expected to achieve distribution growth of between 7% and 8% in 2009, outgoing CEO Pieter Prinsloo commented on Monday.

Prinsloo expected 2009 to be a difficult year, but remained upbeat about the prospects of the company, as it had high-quality assets, low gearing and a healthy balance sheet.

He noted that there would be a slowdown in its tenants’ turnovers, a further slowdown in consumer spending and that some of its collections could slow down in the year ahead.

However, if the market conditions remained relatively stable, the company expected to achieve a distribution growth of between 328c and 332c.

Meanwhile, Hyprop would continue to focus on bringing down its vacancy levels, which Prinsloo said would not necessarily increase.

Vacancy levels had increased to 3,3% in the year ended December 31, 2008, compared with 1,5% the year before.

Hyprop noted that this was mainly attributable to vacancies at the new Stoneridge Centre, in Johannesburg, which opened its doors in September last year, as well as vacancies at the Canal Walk offices, in Cape Town.

Nevertheless, the anchor tenants at the Stoneridge centre had done well in terms of their performance in the year, with early indications of trading looking promising.

Prinsloo said that although there was a 15% vacancy rate at the centre, a figure Hyprop would aim to reduce going forward, the long-term prospects for the centre were still positive.

The vacancy levels at its other assets were low and were expected to remain that way.

EXPANSIONS

Meanwhile, Hyprop was also continuing with its R662-million expansion programme, which would be completed in 2009 and would enhance the value of the company’s retail assets.

The programme included the R206-million expansion programme at Canal Walk, and, in Johannesburg, a R278-million expansion at The Glen and the R179-million Southern Sun hotel, which Hyprop is building at the Hyde Park shopping centre.

The developments were being funded through debt, which the company had already secured, with a new R500-million loan from Standard Bank having been concluded early this year.

Once completed, these developments would increase the company’s gross lettable area by between 11% and 12%.

Prinsloo said that South African banks were still in a healthy position and that they did not see the South African listed property companies as a big credit risk.

South African listed property companies also tended to have lower levels of gearing than their European, North American and Australian counterparts, said Hyprop financial director Laurence Cohen.

Hyprop’s gearing stood at 8,9%, with borrowings at the end of 2008 amounting to R834-million.

The company said that this favourable gearing would also enable it to borrow up to R3,7-billion, which it could use if any acquisition opportunities came up.

However, Prinsloo noted that there were currently no assets attracting its attention, with the properties it would consider buying not for sale.

NEW CEO

Meanwhile, Hyprop was still looking for a new CEO, following the resignation of Prinsloo to pursue other property development opportunities.

Chairperson Michael Aitken noted that it was in the process of looking for a successor for Prinsloo, but said that the company wanted to ensure that it hired the correct candidate.

In the meantime, Hyprop had competent and experienced teams at all levels to ensure that the day-to-day running of the company was conducted as usual.

Edited by: Mariaan Webb
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
 
Latest News
Updated 4 hours ago The Standard Bank Group has been named one of the world’s greenest banks by Bloomberg Markets, ranked eighteenth out of 20 global finance institutions recognised for their investments in green-energy projects and efforts to reduce their own waste and carbon...
Updated 4 hours ago The Department of Environmental Affairs (DEA) was considering establishing an air quality index, to make information on the quality of ambient air in South Africa more accessible, DEA national air quality officer Dr Thulie Mdluli said on Tuesday. She noted that the...
Patricia de Lille, PJ Rabie and Dominic Chennells
Updated 4 hours ago In a boost for renewable energy, the City of Cape Town has signed its first small-scale embedded electricity generation contract with Black River Park Investments, an office park in Observatory.  The 74 000 m2 office park uses large-scale solar power systems to...
More
 
 
Recent Research Reports
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
 
 
 
 
 
This Week's Magazine
MANUFACTURING CAPABILITY Reliable Transformers designs and manufactures dry-type and oil-filled power and distribution transformers up to 3.5 MVA
While Ekurhuleni-based transformer manufacturer Reliable Transformers currently designs, manufactures and tests its products according to the SANS 780 specifications for distribution transformers and other applicable transformer specifications, it is working towards...
GHAREEB SAAD Kaspersky Lab products contain strong heuristics engines that monitor suspicious file execution to detect attacks
Global endpoint security solutions company Kaspersky Lab has introduced new measures to prevent cyber criminals from accessing sensitive data, alongside its malware-signature and heuristic device analysis detection methods. Threats to mobile devices have increased...
MICHAEL FLETCHER Real-time information available to government when citizens use publicly funded Wi-Fi networks will enable it to communicate with citizens and provide services
To ensure uptake and a positive impact, Wireless Fidelity (Wi-Fi) networks in cities must be provided at schools, community centres and commercial centres to enable citizens and government to access information that will improve access to and delivery of services....
Eco-estate Monaghan Farm, located near Lanseria airport, north-west of Johannesburg, has taken a new approach to modern living and sustainability with its 517 ha development, dedicated to farm living.
Forklift and lift-truck distributor Goscor Lift Hi-Reach launched the Genie SX-180, the tallest self-propelled super boom in Africa, in Johannesburg last month. “As the official distributor of the well-known Genie range of equipment in Southern Africa, we are pleased...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks