SA Shopping Centre Investor grows asset base to $172m in sub-Saharan Africa

Hyprop Investments CEO Pieter Prinsloo says the total investment in sub-Saharan Africa was worth more than $172 million (R2 billion) at the end of December last year

Hyprop Investments, South Africa’s third largest JSE-listed real estate investment trust (REIT) on Monday reported that its asset base in sub-Saharan Africa had increased to $172 million (ZAR R2 billion).

Briefing Africa Property News on their half year financial results for the six months to December 2014, the company grew its distributions 13.7%, remaining a reliable income payer for unit holders in SA.

Group revenue rose 11.1% compared with the six months to December 2013.

The total portfolio value increased 2,7% to $2,3 billion (ZAR R27,1bn) from $2,2 billion (ZAR R26,4bn) in June 2014.

The fund has shown phenomenal growth in Africa and under its subsidiary Hyprop Mauritius, the group opened West Hills Mall in Accra, Ghana, last year.

It also owns Accra Mall in Accra and Manda Hill in Lusaka, Zambia. The total investment in sub-Saharan Africa was worth more than $172 million (ZAR R2 billion) at the end of December last year.

The 13 400m² Achimota Shopping Centre also located in Accra, Ghana is on track for opening in October 2015.

"The assets which have been core to our portfolio really performed strongly. These also include the Glen Shopping Centre, Canal Walk and Hyde Park Corner in South Africa," CEO Pieter Prinsloo said.

Ma’alot Investments portfolio manager Maurice Shapiro said Hyprop’s results were impressive, especially the recent strong growth that had come from its older assets.

"Hyprop owns a high-quality portfolio of iconic retail assets, and you may expect its growth to be pedestrian, but management have actively focused their strategy on both maintaining a very recession-proof portfolio while continuing to grow into new geographies in Africa," he said.

Old Mutual Investment Group portfolio manager Evan Robins said Hyprop remained a core holding for many property investors despite its price.

"Hyprop is expensive but it offers focused exposure to some of the best malls in metropolitan SA. This provides defensive income," he said.

Stanlib listed property Funds head Keillen Ndlovu says these are great results and above market expectations.

"It's a company that we like and that we have called as one of our top picks over the last couple of years. It continues to deliver and we like its dominant shopping centres and the expansion to the rest of the continent," he said.

Hyprop's flagship assets in include Rosebank Mall in Johannesburg, Canal Walk (157000m²) in Cape Town, Clearwater Mall (85000m²) and The Glen (75000m²) in Johannesburg as well as Woodlands Boulevard (70000m²) in Pretoria.