Hyprop concludes agreements to dispose of Atterbury Value Mart
Retail-focused real estate investment trust (Reit) Hyprop has concluded agreements to dispose of Atterbury Value Mart for an aggregate consideration of R1.12-billion − 4.6% below the current market valuation.
The company has reached agreements with three private parties who will each acquire a one-third undivided share in the property.
Hyprop says its strategy is to create safe environments and opportunities for people to connect and have authentic and meaningful experiences by owning and managing dominant retail centres in mixed-use precincts in key economic nodes in South Africa and Eastern Europe.
The disposal of Atterbury Value Mart is in line with this strategy and its key priorities to recycle noncore assets and strengthen its balance sheet.
Hyprop CEO Morné Wilken says he is pleased with the outcome.
“The team has made a lot of progress implementing the revised strategy in the last two years, and I must commend them for concluding the agreements in a challenging environment.
"Balance sheet strength remains a core focus for us and the conclusion of the transaction will result in Hyprop’s see-through loan to value ratio of 41.4% at 30 June 2020 reducing by 1.9% to 39.5%,” he says.
Hyprop recently also announced that 82% of shareholders elected to accept the dividend reinvestment alternative recently offered to shareholders, through which it retained R777.3-million of cash as new equity as well, strengthening the company’s financial position.
The retained cash will be used to reduce the group’s loan to value ratio further.
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