The additional nine million Hyprop combined units to three public unit holders (which are not related parties) were issued pursuant to a general authority to issue combined units for 124.65 million rand cash granted to the board at the annual general meeting held on June 18 2003.

The combined units were issued at a price of 13.85 rand per combined unit and listed on Tuesday, May 4 2004 and Thursday, May 13 2004. The proceeds of the issue for cash were utilised to repay borrowings. The borrowings incurred interest at an average rate of 12.49% per annum.

Hyprop has also concluded an agreement for the acquisition of an additional 25.05% interest in the Glen Shopping Centre.

The rights offer is conditional upon the approvals of the requisite regulatory authorities being received and the rights offer circular and letters of allocation being registered with the Registrar of Companies.

Hyprop has concluded an agreement with Gleneagles Retail Centre, a wholly-owned subsidiary of the Standard Bank (SBK), for the acquisition of an extra 25.05% interest in the Glen Shopping Centre, located in Oakdene, Johannesburg, for a cash purchase consideration of 112.725 million rand.

The acquisition is effective on the date on which transfer of the additional undivided 25.05% share is registered in the name of Hyprop. This will mean that Hyprop will increase its controlling interest in The Glen from 50.1% to 75.15%, with Ellerine Brothers owning the remaining 24.85%.

The Glen is a 45,000 square meter regional shopping centre accommodating 158 shops and anchored by Pick `n Pay (PWK), Woolworths (WHL) and Edgars (Edcon, ECO), which, together with other national tenants, occupy 72% of the gross leasable area.

A 6,000 square metre extension, due for completion at the end of 2004 and with an expected yield of 12%, will further enhance the centre's dominant position.