HYPROP IS DIVERSIFYING ITS PORTFOLIO FURTHER INTO EASTERN EUROPE EXPOSURE

HYPROP Investments has increased its shareholding to 100 percent from 78 percent in Hystead’s four premium shopping centres in Eastern Europe: Skopje City Mall in North-Macedonia; City Center One East and City Center One West in Croatia; and The Mall in Bulgaria. As a result of the transaction, Hyprop’s eastern European exposure increased to 32 percent of its total investment property, in line with strategy to increase exposure to Eastern Europe, and dilute exposure to the weaker South African economy. The transaction also simplifies the group structure and normalises the accounting treatment of the Hystead investment. “We fulfilled all the conditions of the Hystead transaction, including shareholders’ approval at the general meeting on March 25. At the meeting, 79.7 percent of the issued shares were voted, of which 99.9 percent voted in favour of the transaction,” chief executive Morné Wilken said yesterday. The eastern Europe portfolio fits Hyprop’s strategy of holding dominant retail centres in their respective catchment areas. The focus was to retain these centres’ dominance through active asset management, strategic redevelopments and refinancing or settling the Euro equity debt. “Priorities for the next six months will be implementing the disposal of Delta City Podgorica; continuing to strengthen our balance sheet; annual reviews of our portfolio to ensure we retain assets that fit strategy; continued repositioning of our portfolio; and implementing ESG initiatives,” Wilken said. |