Hyprop disposes Zambia's Manda Hill Shopping Centre to Growthpoint Investec

Retail-focused property company Hyprop Investments sold its interest in Manda Hill Shopping Centre located in Lusaka, Zambia to Growthpoint Investec African Properties (GIAP).

Hyprop Investments, the owner of Rosebank Mall, Hyde Park Corner and Canal Walk, has sold its stake as part of its plans to reduce its exposure to sub-Saharan Africa excluding South Africa to focus its attention on its South African and Eastern European businesses.

At December 2018 the group had reported an impairment in the sub-Saharan Africa portfolio of R1.07 billion. It recently announced plans to cut its losses and sell those interests.

Hyprop with its associate company AttAfrica agreed to sell the 42,000m² mall which they jointly own to Growthpoint Investec African Properties (GIAP).

GIAP, a joint venture (JV) between Growthpoint Properties and Investec Asset Management, also recently acquired the Achimota retail centre in Ghana owned by Hyprop.

“This acquisition extends our considered asset acquisition strategy, resulting in the well-timed addition of another quality yielding asset to the portfolio at a competitive price,” says GIAP MD Thomas Reilly.

The sale of Manda Hill was concluded at the December 2018 book value.

Hyprop, which is grappling with a debt burden that ratings agency Moody’s Investors Service says is too high, said it would use the proceeds to settle a portion of its US dollar-denominated debt.

Hyprop CEO Morné Wilken says: “This is the next step in implementing our strategy of exiting Sub-Saharan Africa, repositioning our South African portfolio and retaining dominance in the Hystead portfolio in Eastern Europe through active asset management.” A further benefit is that the disposal of Manda Hill will reduce Hyprop’s US Dollar debt and impact positively on the group’s LTV ratio, while enabling the group to focus on key regions of South Africa and Eastern Europe.

Following the announcement of the sale of Achimota Retail Centre in Ghana in June and this disposal, the remaining SSA investment now comprises stakes in Accra Mall and West Hills Mall in Accra, Ghana; Kumasi City Mall in Kumasi, Ghana; and Ikeja City Mall in Lagos, Nigeria. 

Hyprop and the shareholders of AttAfrica intend to further reduce the exposure to SSA over time.