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
Phase 3 construction of the Maclear Wastewater Treatment Works (WWTW) upgrade project, in the Eastern Cape’s Joe Gqabi district municipality, will start in June this year, says South African black-owned engineering firm Gibb, This phase will include the construction...
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
Forest products group Sappi has confirmed the selection of its 25 MW biomass-to-power project, to be erected at its Ngodwana mill, in Mpumalanga, as a preferred bidder under the South African government’s Renewable Energy Independent Power Producer Procurement...
Information and communications technology (ICT) distributor DCC is making Windows- and Android-operating systems tablets available through retailers and education equipment suppliers to provide school children with affordable, high-performance education tools. The...
Another cement manufacturer is set to enter the Ugandan market, raising hopes that prices will come down and spur growth in the construction industry. National Cement, a Kenyan manufacturer, has unveiled plans to invest $195-million in a new manufacturing plant in...
With growth rates exceeding that in the developed world – at an average of between 4% and 5% between 2002 and 2014 – African countries provide investors with ample reason to tap into booming consumer demand says Manufacturing Circle executive director Coenraad...
The South African Chamber of Commerce and Industry’s (Sacci’s) Business Confidence Index (BCI) decreased by 3.7 index points month-on-month to 89.1 in March.