Blue-chip retail acquisitions have become a rarity in the sector‚ with property players looking to hold on to their in-demand assets. Subject to various conditions‚ Hyprop will acquire 100% of the mall for R2.3bn from Sycom Property Fund.

Sycom unitholders on Tuesday approved the transaction‚ which is still subject to regulatory approval.

Investec Asset Management portfolio manager Neil Stuart-Findlay said on Tuesday one of the Investec Property Equity Fund’s largest overweight positions was in Hyprop Investments.

Stuart-Findlay said Hyprop was “a blue-chip growth investment which offers our investors exposure to a portfolio of SA’s premier listed regional and super-regional shopping centres”.

These include the likes of Canal Walk‚ Clearwater Mall‚ Hyde Park Corner and The Glen.

“This segment of the real estate market has proven to be the most defensive through the economic cycle — a crucial advantage in the current challenging economic environment. “Hyprop’s assets are underpinned by a high proportion of national and international retailers‚ which are backed by strong balance sheets‚” Stuart-Findlay said.

He said that the company had “an exceptional long-term track record of management delivery”‚ where distribution growth consistently exceeded the sector average over time and results had met or beaten market expectations.

“Looking forward‚ Hyprop has an accelerating growth profile over the medium term‚ which will be bolstered by the completion of Rosebank Mall in the first half of 2014‚” Stuart-Findlay said.