Retail-focused real estate investment trust Hyprop has announced it will acquire Table Bay Mall, in Cape Town, for R1.6-billion.
The company aims to increase its exposure to favourable geographies and thereby improve its portfolio trading performance.
The 64 142 m2 Table Bay Mall was developed in 2018 in Sunningdale, which is on Cape Town’s west coast. It is well positioned in a high-growth node underpinned by strong residential demand.
Anchor tenants of the single-level regional shopping centre include Checkers, Pick n Pay, Woolworths and other stores such as H&M, Virgin Active and the Department of Home Affairs.
Hyprop plans to incur additional costs to equip the mall with a solar plant, in line with its interrupted trading ethos as the country continues grappling with energy insecurity.
The company will fund the acquisition through new, and a portion of existing, undrawn borrowing facilities.
“The Table Bay Mall acquisition is a unique opportunity for us to obtain a premium retail property at a fair market value, at a relatively early stage of its life cycle.
“Through the support of our proven retail property management expertise, particularly our active asset management initiatives, including optimising the tenant mix, the centre has great potential to unlock further growth and contribute towards the group’s long-term value,” comments Hyprop CEO Morné Wilken.