Hyprop Investments increased its 78% shareholding in four shopping centres
South African real estate investment trust Hyprop Investments said it has increased its 78% shareholding in four shopping centres - in Bulgaria, Croatia and North Macedonia to full control, and will look to completing its agreed disposal of Delta City Mall Podgorica in Montenegro within the next six months.
Through its UK-based subsidiary Hystead Limited, Hyprop Investments now fully owns Skopje City Mall in North Macedonia, City Center One East and City Center One West in Croatia as well as The Mall in Bulgaria. The transactions have increased to 32% the total exposure to Eastern Europe of its property portfolio and simplified its structure, Hyprop said in a statement on Thursday.
"We have fulfilled all the conditions of the Hystead transaction, including shareholders’ approval at the general meeting held on Friday 25 March. At the meeting, 79.7% of the issued shares were voted, of which 99.9% voted in favour of the transaction," Hyprop CEO Morne Wilken said.
The company added that diversifying its exposure to premium retail centres in Eastern Europe is a means to mitigate the effects of the weaker South African economy, as Hyprop will focus in the short-term on strengthening its balance sheet and continuing to reposition its portfolio. The portfolio will be reviewed annually to ensure that it holds assets that align with the property investment trust's strategy.
Hystead took ownership of Bulgaria's The Mall in 2017 for 155 million euro ($171.4 million).
Last month, the South African investor struck a 95 million euro deal to offload Delta City Mall Podgorica to Israel's BIG Shopping Centers.