Shopping malls sustain Hyprop growth

Posted On Friday, 22 August 2008 02:00 Published by eProp Commercial Property News
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A STRONG performance from its shopping centres and its investment in listed Sycom Property Fund helped to boost Hyprop Investment’s distributions 15,4% to 150c for the six months to June.

Kundayi MunzaraAlthough there is a general slowdown in the retail property market, Hyprop, which is focused on prime regional shopping centres, is still steaming ahead.

The company said this reflected the “defensive quality of its shopping centre assets in a depressed economy”.

MD Pieter Prinsloo said the group was slowly starting to see some rental arrears coming through, but these were very low.

“These are more line stores and restaurants. The money is coming in, but it is coming in slower,” Prinsloo said.

He said the company, which owned Canal Walk shopping centre in Cape Town and The Mall of Rosebank in Johannesburg, was “very pleased” with its results.

“We are able to show good growth coming through in six months. They show the quality of our portfolio.”

Other investments include Hyde Park Shopping Centre, The Glen Shopping Centre, Southcoast Mall and Stoneridge Centre, which is due to open next month in Modderfontein.

Prinsloo said the centres boosted earnings 14,2% while total net income from the portfolio rose 14,4% when compared to the previous financial year on a like for like basis.

He said the quality, location and scale of the group’s shopping centres ensured that Hyprop was able to sustain growth in an economic downturn and that these factors had driven continued demand for retail space.

Hyprop’s 37% interest in property unit trust Sycom further boosted distribution growth and Prinsloo said this remained a passive investment. But he said, ideally, Hyprop would like to see Sycom merged with the Hyprop portfolio to “create a better fund”. Sycom has similar prime property assets.

Kundayi Munzara, head of research at Investec Property, said Hyprop had “again delivered excellent growth in distributions which demonstrated the dominance of the shopping centres in the portfolio”.

Last modified on Monday, 21 April 2014 11:34

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