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
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.
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
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.
This Week's Magazine
South Africa remains an important manufacturing and export platform for Ford Motor Company, says executive chairperson Bill Ford. However, he adds that other countries on the continent are “becoming interesting”, and that the US carmaker is casting its net wider for...
Germany’s Max-Planck-Society (MPG) and the Max-Planck-Institute for Radio Astronomy (MPlfR) are investing €11-million (about R150-million) into South Africa’s MeerKAT radio telescope array programme. The money will be used to design, build and install S-band radio...
Infrastructure spend in sub-Saharan Africa will grow from $70-billion in 2013 to $180-billion by 2025, says PwC capital projects and infrastructure Africa leader Jonathan Cawood. This is one of the findings of PwC’s Capital Projects & Infrastructure report on East...
Private-owned defence and aerospace manufacturer Paramount Group and the Ichikowitz Family Foundation unveiled its Anti-Poaching Skills and K9 Training Academy in Magaliesburg last month.
The inclusion of Bluetooth to provide sub-three meter accuracy and heightened functionality for users is one of the ways to change existing wireless networks into engagement networks. An engagement network differs from common wireless networks in that it enables the...