http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.13Change: -0.02
R/$ = 12.07Change: -0.13
Au 1187.17 $/ozChange: -20.08
Pt 1125.50 $/ozChange: -23.50
 
 
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 Letters Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Mar 02, 2009

Hyprop expects up to 8% distribution growth in 2009

Back
Building|Property Development|Property Development
Building|Property Development|Property Development
building|property-development-company|property-development
© 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
Creamer Media Senior Researcher and Deputy Editor Online
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
 
Latest News
Updated 8 minutes ago European manufacturer Airbus is confident that it will win more orders for its flagship A380 Superjumbo airliner before the end of this year. "We should have some orders for the [A]380 this year," company Chief Operating Officer: Customers John Leahy told aviation...
President Jacob Zuma with FIFA president Sepp Blatter
Updated 42 minutes ago Allegations that South Africa promised a $10-million bribe to a former FIFA vice president to win its 2010 World Cup bid were unfounded, a South African Football Association (SAFA) spokesperson said on Wednesday. “We are disappointed at the allegations ... they are...
Updated 1 hour 41 minutes ago Senegal power utility Senelec on Wednesday signed a preliminary agreement with Qatar's Nebras Power and Japanese firm Mitsui & Co Ltd to build a floating liquefied natural gas (LNG) regasification terminal and a 400 MW power station. Senegal, which generates much of...
More
 
 
Recent Research Reports
Steel 2015: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2015 report provides an overview of the key developments in the global steel industry and particularly of South Africa’s steel sector over the past year, including details of production and consumption, as well as the country's primary carbon...
Projects in Progress 2015 - First Edition (PDF Report)
In fact, this edition of Creamer Media’s Projects in Progress 2015 supplement tracks developments taking place under the Renewable Energy Independent Power Producer Procurement Programme, which has had four bidding rounds. It appears to remain a shining light on the...
Electricity 2015: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2015 report provides an overview of State-owned power utility Eskom and independent power producers, as well as electricity planning, transmission, distribution and the theft thereof, besides other issues.
Construction 2015: A review of South Africa’s construction sector (PDF Report)
Creamer Media’s Construction 2015 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; the key participants in the sector; local construction demand; geographic diversification;...
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
 
 
 
 
 
This Week's Magazine
While economic forecasts for the African continent are most favourable, African airlines may not be able to benefit from the expected growth in the region’s gross domestic product (GDP), International Air Transport Association VP: Africa Raphael Kuuchi has warned....
The Automotive Production and Development Programme (APDP) will need to change substantially post 2020, says Metair Investments South African operations COO Ken Lello. “We must not make tweaks. We have to change. What we are doing is not sustainable.”
Banking group Absa’s forecast is for the rand to end the year at around R13 against the dollar, weakening further to R13.50 by 2016, says Absa sectoral analyst Jacques du Toit. He warns that possible interest rate hikes in the US may see capital being pulled from...
The Dispute Resolution Centre at the Bargaining Council for the Civil Engineering Industry (BCCEI) is now open to handle party-to-party disputes. The BCCEI represents the interests of all level four to nine Construction Industry Development Board companies.
FREDRIK JEJDLING Sustainability becomes an important part of a business’ decision-making process
Communications technology firm Ericsson sub-Saharan Africa head Fredrik Jejdling says the company’s commitment to sustainability and corporate responsibility has been integrated into all facets of its operations, which has provided it with sustainable revenue...
 
 
 
 
 
 
 
 
 
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
Subscribe Now for $96 Close
Subscribe Now for $96