Hyprop Acquires Table Bay Mall for R1.6bn, Set to Increase its Retail Footprint

Hyprop Investments, a retail-focused real estate investment trust (Reit), has announced a R1.62 billion acquisition of the Table Bay Mall from Table Bay Mall Trust. The move comes as a surprise, given the current challenging financial climate in the listed property sector.

The Table Bay Mall, opened in 2017 by private property group Zenprop, covers a retail area of 64,143m² in Cape Town’s Bloubergstrand. This acquisition will align with Hyprop's strategy of expanding its footprint in "favourable geographies".

CEO Morné Wilken affirms that the purchase was relevant and within the company's strategic priorities; the transaction also includes the acquisition of a new solar plant currently under installation at the mall at a cost of R23.3 million.

According to Wilken, the Table Bay Mall is a premium retail property recognized for its strong growth potential. He envisions the property will significantly contribute to the Hyprop's long-term value, backed by proven retail property management expertise to further unlock growth.

Hyprop, alongside this local success, flaunts prime assets like Canal Walk, Cape Gate and Somerset Mall in Western Cape, and Rosebank Mall and Clearwater Mall in Johannesburg. The trust manages a local portfolio of properties valued at R23 billion and an Eastern European portfolio worth R12 billion.

In further good news, Hyprop received an upgrade on its long-term national and international issuer ratings by GCR Ratings, certifying Hyprop's post-pandemic recovery and strategic financial management.

The GCR stated that Hyprop's efforts to reposition its retail portfolio over the last four years have yielded a strong performance bounce-back post-pandemic and offers resilience against economic headwinds.

The report also emphasized the trust's ability to improve upon tenant turnover growth and trading density figures, outperforming pre-pandemic levels.