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Hyprop sells R93m worth of properties

Posted On Wednesday, 12 January 2005 02:00 Published by eProp Commercial Property News
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Hyprop Investments has disposed of office buildings worth an aggregate R93m to a spread of parties

Pieter PrinslooListed property loan stock group Hyprop Investments has disposed of office buildings worth an aggregate R93 million to a spread of parties, successfully furthering its core strategy of disposing of non-core commercial properties to focus on prime retail real estate.

Explaining the sales on Tuesday, Hyprop managing director Pieter Prinsloo said: "The disposals present the ideal opportunity to exit small commercial properties that do not form part of the fund's core assets, at fair values. Hyprop's clearly stated strategy is to focus on sizeable property investments, particularly in regional shopping centres where there is great development potential."

A recent example is Hyprop's R192 million investment jointly with Redefine Income Fund in the South Coast Mall on KwaZulu-Natal's Shelly Beach.

The largest single sale by Hyprop, announced on Monday, comprises 10 office buildings sold to JSE-listed Freestone Property Fund (FSP-formerly Arnold Property Fund) for a total of R57.0 million.

The purchase price will be payable in a combination of 28.5 million rand in cash and 6.7 million Freestone
units issued at R4.25 per unit, subject to transaction approval from the competition authorities by month-end.

Michael Aitken, director of Freestone, said the transaction is strategic for Freestone in line with its intention to invest primarily in the commercial and industrial property sectors going forward.

"The buildings offer strong investment opportunity in fast-growing business nodes," he elaborated.

Prinsloo noted that with Freestone units currently trading at around 4.95 rand, the sale terms offer the units at an attractive price with the opportunity for Hyprop to unlock capital down the line.

The balance of Hyprop's properties, totalling 36 million rand altogether, were disposed of to various separate parties. Prinsloo pointed out that the disposals had significantly reduced vacancies in Hyprop's office portfolio.

The properties including those sold to Freestone total some 23,400 square meters of office space located in Dunkeld, Wierda Valley and Midrand.

The disposals in total have no material impact on Hyprop's earnings.

According to Prinsloo, the cash proceeds will be used to fund future key investment opportunities for Hyprop.

Hyprop's unit price was last quoted at 19.30 rand, unchanged from Monday's close. This is not far off its all-time high of 19.75 rand, reached on January 5 this year.

 

Last modified on Tuesday, 13 May 2014 17:53

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