Aug 23, 2012
Hyprop reports strong half-year distribution growthBack
Cape Town|Construction|Africa|Atterbury Africa|Ghana|PROJECT|Projects|Rosebank|Africa|Ghana|Canal Walk|Southcoast Mall|Southern Sun Hotel|Pieter Prinsloo
© Reuse this
Hyprop also dvanced its strategy of growing its asset base with the approval of the Rosebank Mall redevelopment, which would see the company invest R920-million, and by expanding into Africa through an investment in Atterbury Africa.
Vacancy levels were lower at 3.8%. “Demand for shops remains healthy in the super regional and large regional malls, with virtually no vacancies,” said Prinsloo.
In line with Hyprop’s stated strategy to sell noncore assets, its 50% undivided share in Southcoast Mall was sold to Redefine Properties for R110.5-million in the period, while it disposed of its investment in Vunani Property Investment Fund for R101-million. An agreement was also reached in June for the sale of the Trade Centre property in the CapeGate precinct for R70-million. Subsequent to the period end, Hyprop also sold its investment in Acucap for R108-million.
Net borrowings at year-end totalled R5-billion, equating to a gearing ratio of 24.7%, which was notably down from 26.2% at December 2011. The lower gearing is a result of an increase in property valuations and the application of proceeds on disposals.
Hyprop’s development focus for the year ahead remained the Rosebank Mall refurbishment and extension. “Construction on the [Rosebank] Gardens site has started and the project is expected to take 24 months to complete,” Prinsloo confirmed.
This would almost double the Mall’s retail space from 36 000 m² to 62 000 m², substantially growing its tenant base. “The board has approved the redevelopment project, with an expected yield in the region of 7%,” he added.
Further development projects include planning for extensions to Canal Walk, in Cape Town, to meet rising tenant demand, and the upgrade of Willowbridge South. The Clearwater Mall extensions, specifically to the Edgars and Jet stores, were completed by the end of the period at a cost to Hyprop of R12.9-million and an incremental yield of 13.1%.
Regarding Atterbury Africa, in which Hyprop has co-invested together with the Atterbury Group, Prinsloo said: “Our main joint focus is to primarily develop and own quality shopping centres in Africa, which, as a growing emerging economy, offers substantial opportunities.”
Hyprop has an initial shareholding of 37.5% and has committed to invest R750-million over the next five years. “This is not a huge number, but it is a good start and we believe that it will develop in years to come,” he said.
Atterbury Africa recently purchased a 42.5% interest in the successful Accra Mall, in Ghana. “We intend developing further shopping centres in Ghana and other countries on the continent,” Prinsloo noted, adding that a number of companies were looking to invest in Africa at the moment.
On the back of improved distribution growth for the first six months, Hyprop had increased its distribution growth forecast to between 5% and 7% for the full year ending December 2012.
Combined units in Hyprop closed yesterday at R69.59.
Edited by: Harald Winkler© Reuse this Comment Guidelines (150 word limit)
Other Construction News
Recent Research Reports
Water 2015: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2015 Report considers the aforementioned issues, not only in the South African context but also in the African and global context in terms of supply and demand, water stress and insecurity, and access to water and sanitation, besides others.
Input Sector Review: Pumps 2015 (PDF Report)
Creamer Media’s 2015 Input Sector Review on Pumps provides an overview of South Africa’s pumps industry with particular focus on pump manufacture and supply, aftermarket services, marketing strategies, local and export demand, imports, sector support, investment...
Liquid Fuels 2015: A review of South Africa's liquid fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2015 Report examines these issues in the context of South Africa’s business environment; oil and gas exploration; fuel pricing; the development of the country’s biofuels industry; the logistics of transporting liquid fuels; and...
Road and Rail 2015: A review of South Africa's road and rail sectors (PDF Report)
Creamer Media’s Road and Rail 2015 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 infrastructure and network, the funding and maintenance of these respective networks, and...
Defence 2015: A review of South Africa's defence sector (PDF Report)
Creamer Media’s Coal 2015 report examines South Africa’s coal industry with regards to the business environment, the key participants in the sector, local demand, export sales and coal logistics, projects being undertaken by the large and smaller participants in the...
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
This Week's Magazine
The BMW Group will invest R6-billion at BMW Group South Africa’s (BMW SA’s) Rosslyn plant to produce the next-generation X3 sports-activity vehicle (SAV) for the local and export markets. Rosslyn will continue production of the current 3 Series through its lifecycle,...
The lack of consequences for poor performance and transgressions on the part of contractors remains a significant hurdle to tackling South Africa’s service delivery challenges, delegates heard at the Consulting Engineers South Africa Infrastructure Indaba, on...
City of Ekurhuleni executive mayor Mondli Gungubele earlier this month officially named the city’s bus rapid transit (BRT) system, Harambee.
About 58% of unstructured data stored by companies is dark data, which means that the value or regulatory importance of the data has not been determined. Subsequently, most of the stored data add costs, rather than increasing revenue or reduce regulatory risks, says...
Effective logistics, import/export and manufacturing consulting services require detailed industry knowledge and experience, but can add significant value to these industries by providing expert advice on various technical elements in their value chains, says...