South Africa’s Hyprop Investments, the owner of Hyde Park Corner, The Mall of Rosebank and Canal Walk, is making progress exiting Africa so it can focus on better growth markets in Eastern Europe.
The company is selling its interest in Zambia’s Manda Hill shopping centre. Hyprop owns a number of shopping centres either outright or through join ventures in the rest of Africa.These malls have underperformed and Hyprop had to impair this business by R1.07bn earlier in 2019.On Monday, Hyprop Investments and AttAfrica concluded an agreement to dispose of their interests in the Manda Hill shopping centre to Growthpoint Investec African Properties.
The shopping centre was owned by Hyprop Investment’s 37.5 percent-held Mauritius subsidiary. Hyprop’s share of the disposal proceeds will be used to settle a portion of its dollar denominated debt.
Hyprop is grappling with a debt burden that ratings agency Moody’s Investors Service says is too high.The company has taken a hit on its investment in the rest of Africa, having impaired that business by R1.1 billion earlier in 2019.
Hyprop is also in discussions with several parties regarding the disposal of the remaining African shopping malls in which it has an interest. Growthpoint Investec African Properties’ purchase of Manda Hill shopping centre follows its recent acquisition of a 97.5 percent stake in Achimota Retail Centre, a prime shopping centre in Accra, Ghana.