Presenter: Lindsay Williams Guest(s): Pieter Prinsloo

Consolidation is inevitable in the listed property sector of the JSE - especially in retail, where opportunities are limited. Now Hyprop has come out with an equity or cash offer to unit holders of SA Retail. With Hyprop managing director Pieter Prinsloo.

LINDSAY WILLIAMS: What’s the situation - are you making a formal offer for SA Retail?

PIETER PRINSLOO: That’s correct - our offer went out to all the SA Retail unit holders today.

LINDSAY WILLIAMS: Can you give us some details?

PIETER PRINSLOO: The basis of our offer is twofold. There is a share transaction where we offer one Hyprop unit for every 2.7 SA Retail units. There’s also a cash payment of R8 for every SA Retail unit.

LINDSAY WILLIAMS: What is the initial reaction? You must have done a bit of canvassing before you put the offer on the table?

PIETER PRINSLOO: Yes. So far we’ve confirmed up to 31% with Redefine. The rest of the market - we’ve canvassed support. They haven’t committed themselves, but we are quite confident that we will be able to get over 50%.

LINDSAY WILLIAMS: Is that what you need - over 50% for the deal to go through?

PIETER PRINSLOO: That will give us initial control. Obviously from there we will need to sit down with the board of SA Retail - and negotiate further.

LINDSAY WILLIAMS: Do they favour Hyprop coming in? I know a lot of people are sniffing around SA Retail?

PIETER PRINSLOO: They are retail-focused, similar to us.