Hyprop eyes SA Retail assets

Posted On Friday, 15 July 2005 02:00 Published by
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The Bottom Line: Hyprop’s position

Pieter PrinslooListed property loan stock company Hyprop, which is in the middle of a hostile takeover of rival SA Retail Properties, was likely to negotiate with SA Retail to obtain certain desired property assets, analysts said yesterday.

On Wednesday, Hyprop’s unitholders gave it the green light to pursue its takeover of SA Retail.

Hyprop MD Pieter Prinsloo has said Hyprop’s ownership target in SA Retail was for at least 40% of the group’s units.

Redefine Income Fund has already undertaken to sell its 25% interest in SA Retail to Hyprop, which has bought about 6,5% of SA Retail units on the market.

More than 50% of SA Retail unitholders have indicated they will reject Hyprop’s takeover offer.

First South Securities property analyst Leon Allison said if Hyprop obtained 40% of SA Retail, it would be able to "exert significant influence" and could end up negotiating with Marriott, SA Retail’s fund managers, to exchange Hyprop’s units in SA Retail for some of its properties.

"Hyprop would have its eye on the larger retail properties," said Allison. "From the beginning Hyprop indicated they were only interested in some of the properties (belonging to SA Retail)."

Allison said if Hyprop still managed to obtain some of the properties in exchange for the SA Retail units it acquired, this would still be viewed as a positive outcome for the company.

Andisa Securities property analyst Len van Niekerk said it was "quite clear" Hyprop was planning to obtain property assets in exchange for its units.

Last modified on Tuesday, 06 May 2014 17:18

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