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.
Signs of the times under Lungu.
Your friends are building factories and investing in agriculture and manufacturing, imwe ati shopping malls and consuming. This was predictable.
Do you read or just look at words? They are selling their African assets to focus on the European market. Africa is not Zambia alone
They have made too much money now …living as they know things going down under Lazy Lungu
fake development is not sustainable, all the majority of people do at Zambian malls is use the toilets, take pictures in their salaula gear and enjoy a quarter chicken from Nandos. I personally don’t shop at these stupid malls or Chinese shops. i only buy from the locals. I hope these trends have an upward trajectory
Even in Kitwe the inappropriately named ECL mall is unviable! Too expensive for rent by poor Chambians (Native Zambians & Chinese Zambians). For a year rent spaces are still OPENING SOON. Do these mall owners ever conduct baseline surveys prior to construction? They wud hav known that majority unemployed Chambians hav diminished purchasing power!
Failed economics under Lungu: wasted years of PF economic misgovernance!
@ Xedux
Just say that you alone have over borrowed and used the money on consumables such as unsustainable lifestyle, women and on Japanese .coms. Sadly most of you guys on Kopala dont know how to invest the money you make from mines contracts, you short-term people who think of now and not tomorrow. Copperbelt has money but only those who know the money game shall continue to prosper. You get one big contract the first thing you get is a Hammer, not knowing that that a liability. I come to Copperbelt, do my thing, invest in properties, you guys start renting and then you wonder why.
@Malinso
How many Kopalas own Hummers if not only Chile1 & late Youngson?
Even the houses u claim 2 build will be unviable due2 joblessness. Or what’s yo market target if not miners? Even Zainese will eventually fail to rent yo mushrooms due to poor commodity sales. Already many Zainese are closing shop cos of poor business.
Xedux, just because with money who are learned and have been investing quietly and far much more richer than the late criminal and illiterate Armstrong who used to show off, does not mean they’re not there. By the way, what’s a Hummer? In my world, it’s only a Humvee just advertised by Arnold Shwazzeneger’s his use of it in his movies. It’s a very uncomfortable SUV.
@Mayanda MulengaAl
It appears u have misunderstood me! You have not connected the dots.
Refer to @Malinso BlueHead’s response to my earlier post. That’s the Genesis of the talk of Hummer. No one has said a hummer is a special or status vehicle.
Its very normal in business to sell and buy. Thats what Wall Street is all about in the US. Moreover, new owners always come with new, fresh and innovative ideas. New investments brings new and better thinking.
They have actually completed 100% sell to GROWTH POINT The sell is natural for Hyprop selling its development to make a return to GROWTH POINT
Those of you who know the Portfolio and world class Properties management and Investments by GROWTH POINT Its even much better sell and a Good Thing for Mandahilll and Its clients
Its a Plus for Mandahill,a superb central mall with Good environment for shoppers and Business and definitely a Good acquisition by Growth Point with good prospects and innovations
Lungu’s sickly economy is getting so many negative indicators like a life support machine showing death is imminent.
@ Mzambia wa Zamani
Umwana ashenda atasha nyina ukunaya ubwali. You chaps in UPND have been so brain washed by HH to an extent that you think UPND is HH and HH is UPND hence you are stuck with a loser and dont see nothing wrong. Just look at yourself very closely, you are now old and still wasting time clinging to someone of no value.
The principal and game in Hyper and upmarket property management is that you buy and sell. Moreover, those that buy property today and invest well in it stand to get better Returns considering that Zambia will have close to 1 million Middle Class citizens by 2030 (not too far from today) and only fourth to Nigeria. Thanks to the solid ground work being undertaken by President Lungu and PF Government. Your HH has clue of the future, deny this if you can.
UPND cadres really amaze me.Thats why their “cuundu chaitwa chairman” shall continue losing elections in Zambia!!Surely is ECL the president of the whole Africa or you simply dont understand simple English?Can someone please translate the above article into tonga for Kainde followers to understand it!!!Look, it is damn normal for an investor to sell shares and invest elsewhere for various reasons.If you read the story above,it says the investor wants to take his money to Eastern Europe (Russia,Ukraine,etc) where returns(profit) in properties are high currently unlike in Africa.Kkkkkkk but as usual,tribal party(UPND) cadres want to link ECL to this manda hill 37% share issue!!!Amazing stuff.Wait for 2021 as the 6th straight defeat awaits your Kainde since results a week ago from…
I was starting to read your comment it was interesting at first then I saw that you started becoming tribalistic which made everything else you said irrelevant.
@ Njimbu is one of Sunday Chanda’s other aliases here.
I meant to say “where returns (profit) from properties are high currently……
What ever, you never make sense either way.
A Plus for Mandahill Mall and Zambias developing Real estate sector
The business environments in Zambia and in particular Lusaka in terms of micro and macro dynamics ad demographics favors purchase in mandahill for that long-term Investor its good strategic goal of investing for growth into Zambia by the valued Investor in properties Growth Point that will complement farmers house and see the estate alternative investments in Zambia to perform for long-term
It will actually result in promotion of Investment Grade Properties and alternative Investments opportunities for those listed or non asset classes on the Zambian Market Its a significant Game changer for the real estate sector and the…
The concept of shopping malls is outdated. And unfortunately due to lack of exposure most Zambians can’t see that.
Mixed development is the new concept, you use the same space for Housing, offices, retail and we call that a town center or simply down town.
You put housing units/apartments and hotels on third floor and above, office space on the second floor and retail space on the first floor.
This way you maximize land use and you don’t have to be at the mercy of shoppers. also majority of the shoppers are coming from within the development. It’s expensive to build this way but it’s working very well.
Some very good malls have been demolished and replaced with mixed use developments already.
I believe economic performance has nothing to do with the performance of malls.
Shopping trends are changing everywhere, most items can be bought without having to go to the mall now. People often visit the mall and spend nothing.
Malls are a costly investment and the returns are not good enough for loan repayments and dividends for the investors. So the rental rates are higher and then the profit margins for the retailers are not as impressive, hence the frequent closing of most retail businesses operating from malls.
Clovis, Calif. — Mason Asset Management and Namdar Group have purchased Sierra Vista Mall and Lifestyle Center, a regional mall located at 1050 Shaw Ave. in Clovis, eight miles northeast of Fresno. An undisclosed seller sold the asset for $41 million. The seller had a 100 percent leasehold interest in the 500,000-square-foot mall. Originally built in 1988 and renovated in 2005, the mall features an outparcel and open-air configuration, as well as interior space. Current tenants include Kohls, Target, Sierra Vista Cinema, AT&T, Baja Fresh, Chipotle, Jamba Juice, Panera Bread, Red Robin Gourmet Burgers and Brews, Sleep Fit and Starbucks Coffee. Thomas Dobrowski of Newmark Knight Frank’s Capital Markets represented the seller in the transaction.
Am sure it was repossessed and auctioned off by the lenders.
Venture capital funds buy these malls for the value of the land hoping to cash in.
Most of these traditional malls in America are making big time losses. Bank are very hesitant to take them up for collateral.
My neighborhood mall has been up for sale forever, it’s worth more than $250 million and the higher bidder for $19million has been the bank that owns it.
The city council wants it gone and replaced with a mixed use development because that will widen the tax base for the city.
I work with real estate developers and non of them want to have anything to do with malls.
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The point is see how malls are performing elsewhere and impacting properties asset management its the opposite of what you are saying for regional malls that have gained momentum and become attractive in mixed environments as services and shopping become centralized
On the Contrary The property markets in the US have seen increased performance in KEY UNDERWRITING MEASURES Commercial real estate lending activity increased in the Q2 , up by 2.3% from March’s end and up 20.8% year over year. Its has remained robust and momentum is pointing on the positive side
According CBRE research