Pieter Prinsloo, CEO at Hyprop Group, said this week the funds granted by Standard Bank signalled good faith in his company and the projects undertaken last year.

The unfinished developments included the R370m The Glen Shopping Centre’s additional retail space and parking bays to be completed in November, the R250m Canal Walk retail pods expected to open in May or June, and the R176m Hyde Park Shopping Centre’s four-star Southern Sun hotel opening in August.

Prinsloo said, “These developments are in line with Hyprop's strategy of focusing on asset enhancing opportunities in the existing portfolio to drive continued capital and income growth."

In its trading statement for the financial year ended December 31, the company said foot traffic at the shopping centres reflected steady trade during December. The retail sector has been the under some pressure following negative consumer sentiment.

According to Hyprop, retail spend on average across the portfolio grew 1% last month, while total spend for the full portfolio increased 5% year on year. Hyprop’s flagship shopping centre, Canal Walk in Cape Town, grew retail spend by 7% year on year, the same as in the previous year.

Prinsloo warned that this year would be more challenging for the retail property sector. This was signalled by the decline in footfall at Hyde Park and The Glen, which was due to the shortage of parking as a result of construction work.

Despite these challenges, Hyprop said the shopping centres reported small growth in retail spend last year.

“The completion of the new developments at these centres, on track for later this year, will not only release the full parking facilities but is also expected to generate growth in footfall through the enhanced retail space and tenant mix,” said Hyprop.

Hyprop said the Mall of Rosebank was also affected by the construction work taking place around the centre in preparation for the Gautrain.

As a result, footfall fell marginally year on year. Nonetheless, the mall reported slightly higher retail spend than in 2007. “Once the adjacent Gautrain station opens, the centre is set to benefit from increased commuter traffic as well as from developments around the Gautrain station nodes,” said Hyprop.

Southcoast Mall in KwaZulu-Natal was said to have continued to perform well and achieved higher footfall and retail spend, which was up 11% for last year, capitalising on the completion during the year of its expansion programme.