Hyprop sells 50% stake in Hyde Park Corner for R805 million

Hyprop has entered into an agreement to sell 50% of the Hyde Park Corner shopping centre, together with the rental enterprise thereon, for R805 million, to Millennium Equity Partners, with an option to dispose of the remaining 50%.

The JSE-listed retail-focused Real Estate Investment Trust with properties in mixed-use precincts in South Africa and Central and Eastern Europe said Tuesday that the transaction was consistent with the company’s strategy to allocate more capital to the Western Cape and Eastern Europe, and focus on regional malls rather than mid-sized malls.

Millennium is a property private equity fund, the general partner of which is beneficially owned by Stanger Enterprises, TF Holdings, and Nisela Private Equity, none of whom are related parties of Hyprop.

Hyprop’s directors said the proceeds of the disposal would be allocated to reducing debt in the short term and for asset management initiatives, organic growth opportunities, further solar-PV projects, and new investments within Hyprop’s existing operations.

The property was internally asset managed by Hyprop, and the property management function would be outsourced to JHI in terms of the transaction.

A Co-ownership Agreement provides for a put option in favour of Hyprop and a call option in favour of the purchaser which, if either is exercised, could result in the purchaser acquiring the remaining 50% undivided interest in the centre.

Hyde Park Corner comprises 38 257 square metres of retail sector lettable space, with an average rental per square metre per month of R408.50.

Hyprop said its directors were satisfied that the disposal price was considered to be fair market value. The value of the net assets and the profits attributable to the net assets of 100% of the rental enterprise were R1.58 billion and R46.52 million, respectively.

Hyprop said days ago, in a pre-close update for the five months to May 31, that Hyde Park Corner saw the opening of luxury salon and day spa, Society 1840, during the period, and the centre was being “significantly enhanced” with the opening of a new Checkers Freshex store in August. Several revamps had been completed or were underway, including Charles Greig, Sorbet Man, and Sorbet Beauty.

Hyprop’s loan-to-value ratio improved to 34.2% at the end of the five months from 36.3% at the end of December 2024, following the raising of R808 million in capital last month.

The group also indicated it will put in a bid for JSE-listed Central and Eastern European retail property company MAS, and that the capital raise would be used, if the bid is successful, to help fund the cash portion of the acquisition.

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