Hyprop said it would also be acquiring an additional 25,05% stake in the 45000m² The Glen Shopping Centre, south of Johannesburg, boosting its holding to 75,15%.

Hyprop director Marc Wainer said the capital raised would be used to buy the stake in The Glen and complete refurbishments at the shopping centre, as well as for future acquisitions.

The company also issued a forecast explaining the effects of the rights offer and acquisition. Total distributions to combined unitholders would rise to 150,5 c for the year ended December 31 2004, more than 7% up on the 140c distributed for the year to December 31 2003.

Explaining how the capital raising exercise worked, Wainer said 9million units had been issued to three public unitholders on May 4, and R124,6m was raised. In addition, Hyprop would issue rights to raise extra capital of R251,3m. This would give unitholders the opportunity to acquire 19 Hyprop units for every 100 they hold at a discounted R13,50.

Hyprop's market capitalisation would increase to about R1,6bn through the capital raising exercise, and its borrowings would decrease to about 40% of total assets.