Financial foundation for retail fund now in place

Posted On Thursday, 01 September 2011 02:00 Published by eProp Commercial Property News
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Nedbank Corporate Property Finance has approved finance to the value of R3.8 billion, creating the financial foundation for Hyprop Investments Limited to acquire 100% of Attfund Retail Limited

Ken ReynoldsPreviously a 100% subsidiary of Attfund Ltd. “Through the merger of Attfund’s and Hyprop’s property assets a superior shopping centre fund unrivalled in terms of quality and geographical diversification, has been created,” comments Ken Reynolds, regional executive: Nedbank Corporate Property Finance, Gauteng. “Nedbank Corporate Property Finance is proud to be the financial partner of choice in a transaction of this scale, as it further  demonstrates  our commitment to the listed property sector in South Africa.”

Continually ranked as one of the top-performing listed property funds in the country, Hyprop - a Property Loan Stock Company established in 1987 and listed on the JSE since 1988 - specialises in premium regional, large regional and super regional shopping centres. Its impressive R11.6 billion portfolio mainly comprises prime shopping centres in key urban locations as well as some non-core offices and a small hotel component.  The former include Canal Walk, Hyde Park Corner, The Mall of Rosebank, The Glen, Southcoast Mall and Stoneridge. Hyprop’s portfolio is well spread nationally. Its proactive asset management with a focus on the tenant profile across the board, as well as the scarcity value of the centres themselves, contribute to the consistently strong performance of the fund.

“The acquisition of the Attfund Retail portfolio enables Hyprop to augment its portfolio, almost doubling its value to around R20 billion, while retaining the level of quality and its niche focus on shopping centres,” adds Reynolds.

Following the approval of the required finance by Nedbank Corporate Property Finance, the Attfund Retail portfolio, which includes iconic retail centres such as Clearwater Mall, Woodlands Boulevard and CapeGate, will now form part of Hyprop’s direct property investment portfolio.

According to Hyprop’s CEO, Pieter Prinsloo, the transaction will entrench Hyprop as the leading shopping centre fund in South Africa in terms of both asset quality and scale, as well as push Hyprop firmly into the top three listed property funds on the JSE.

“We look forward to a long and mutually beneficial relationship with Hyprop, undoubtedly one of the heavy-weights in the South African property market and a highly valued client at Nedbank Corporate Property Finance,” concludes Reynolds.

Last modified on Tuesday, 12 November 2013 15:31

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