Hyprop Investments Limited Announces The Acquisition Of Table Bay Mall
Hyprop Investments Limited Announces The Acquisition Of Table Bay Mall. Hyprop has concluded a sale agreement with the Trustees for the time being of The Table Bay Mall Property Trust, to acquire 100% of the commercial letting enterprise, including the property and lease agreements relating to it, known as “Table Bay Mall”. As part of the acquisition, Hyprop will also acquire the solar panels that are in the process of being commissioned on the property.
As a retail-focused REIT, Hyprop creates spaces and connects people by owning and managing prominent retail centres in mixed-use precincts in key economic nodes within South Africa and Eastern Europe. The transaction is consistent with the company’s strategy to increase its exposure to the Western Cape and is aligned with Hyprop’s key priority of reviewing its portfolio annually to evaluate the case for recycling of assets, increasing the Group’s exposure to favourable geographies and considering new growth opportunities. This envisages recycling capital from some of its mature investments (market conditions permitting) into opportunities with strong growth potential, such as Table Bay Mall.
Table Bay Mall is strategically situated in Sunningdale, inland from Blouberg and Big Bay, on Cape Town’s west coast, a region of the Western Cape that is expected to experience above-average growth, due to residential development that is partly driven by relocation trends within South Africa that favour the Western Cape. Table Bay Mall provides Cape Town’s west coast with the ease of a convenience centre combined with the choice of a regional shopping centre in a unique and sophisticated single-level shopping, dining and entertainment experience. The centre is located in a high-growth node and the majority of Table Bay Mall’s shoppers are medium to high income earners. An independent nodal study confirms an excellent customer loyalty score, with customers that are very satisfied with the centre. The area around the Table Bay Mall has been earmarked for future construction of 5 000 to 7 500 residential units over the next 5-10 years, depending on market conditions. Table Bay Mall was developed in 2018 and has successfully grown its key trading metrics and net operating income since inception, despite 2 years of disrupted trading conditions due to the Covid-19 pandemic.
The acquisition of Table Bay Mall is a unique opportunity for Hyprop to acquire a premium retail property at a fair market value at a relatively early stage of its life cycle, with the potential to unlock additional growth through active asset management initiatives, including optimising the tenant mix, drawing on Hyprop’s proven retail property management expertise.
