http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.09Change: 0.08
R/$ = 10.50Change: 0.03
Au 1305.70 $/ozChange: 6.82
Pt 1484.50 $/ozChange: 11.00
 
 
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 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|Property Development|Retail Assets|Hyprop|Laurence Cohen|Michael Aitken|Pieter Prinsloo
|Property Development|||Property Development||
cape-town|johannesburg|hyprop|property-development-company|standard-bank|r179-million-southern-sun-hotel|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
 
 
 
 
 
 
 
 
Other Construction News
The South African Real Estate Investment Trust (SA Reit) Association has called on the Competition Commission to intervene in undesirable exclusivity clauses in retail leases that were allowing retailers to stifle market share. The association’s members, which...
ADAM HABIB University of Witwatersrand vice-chancellor and principal Adam Habib
The first of a series of 15 public debates exploring options for the implementation of the National Development Plan (NDP) was officially inaugurated at the University of the Witwatersrand (Wits) School of Governance this week. In association with the Oliver and...
Mike Rossouw
Eskom’s appointment of former mining executive Mike Rossouw on a one-year, extendable assignment appears to be closely associated with Public Enterprises Minister Lynne Brown’s appeal for “extraordinary” steps to be taken to deal with the “unsatisfactory”...
More
 
 
Latest News
Updated 20 minutes ago Unregistered motorists in Gauteng owe the SA National Roads Agency Limited (Sanral) over R1-billion in unpaid e-toll accounts, Transport Minister Dipuo Peters said. As of May 31, the unaudited amount owed for more than 90 days was R156 623 567 while R995 362 885 was...
The head of economics and trade at the Delegation of the European Union (EU) in Pretoria has acknowledged South Africa’s trade negotiators won important concessions in the long-running Economic Partnership Agreement (EPA) trade talks. But he says it was South...
Responding in writing to a recent Parliamentary question by the Democratic Alliance, Transport Minister Dipuo Peters has provided an update for each of the country’s 13 bus-rapid transport (BRT) systems, noting that each network is at a different stage of...
More
 
 
Recent Research Reports
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.
Real Economy Insight: Steel 2014 (PDF Report)
This four-page brief covers key developments in the steel industry over the past 12 months. It provides an overview of the global and South African steel and stainless steel markets, South Africa’s major steel producers and events that have shaped these markets.
 
 
 
 
 
This Week's Magazine
Multinational semiconductor chipmaker corporation Intel announced its national campaign to further acquire partners to drive its She Will Connect programme, an initiative that aims to expand digital literacy skills to young women in developing countries, further into...
South Africa's MeerKAT radio telescope array programme should get back on schedule within a few months. This assurance has been given by SKA South Africa (SKA SA) associate director: science and technology Prof Justin Jonas. Early last month, Science and Technology...
The Passenger Rail Agency of South Africa’s (PRASA’s) Metrorail service will remain a subsidised service following its current multibillion-rand rolling stock, station, depot and signalling upgrade programme. PRASA group CEO Lucky Montana has allayed fears that...
GARYN RAPSON Contaminated Land Provisions in the National Environmental Management: Waste Act No 59 of 2008 will open the door for court battles to determine who will be held liable for the remediation
The uncertainties around the remediation of affected areas as addressed in the Contaminated Land Provisions in the National Environmental Management: Waste Act No 59 of 2008 will possibly spark litigation and disputes between landowners and businesses, contractors...
South Africa is currently the largest component of the African Development Bank’s (AfDB’s) active portfolio in Southern Africa, comprising 62.5% of the bank’s $7.9-billion exposure to the 12-country region – the second largest beneficiary is Mauritius, which...
 
 
 
 
 
 
 
 
 
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