Ian Fife

When Old Mutual Property Investments put Nedbank Gardens office building in Rosebank, Johannesburg, up for sale, it was first offered about R95m. Hyprop, the listed property fund that owns next door Rosebank Mall shopping centre, offered R125m cash.

Any buyer would have jumped at the near R30m windfall — but not Old Mutual, who demanded R200m from Hyprop. Hyprop told it to take a hike and Old Mutual promptly sold it to commercial developer Intaprop for R95m.

Old Mutual does not want Hyprop extending Rosebank Mall westward, away from Mutual’s redevelopment of The Zone and Mutual Square next to the Gautrain line, east of the mall.

“Besides, (Hyprop stablemate and listed fund) Redefine made us pay at least a R15m premium for the Standard Bank building in Cradock Avenue, Rosebank, which we need to complete The Zone,” says Old Mutual Property’s Colin Young.