CATEGORIES: Africa, Industry News, Private Equity, REITs & Funds

2 Down, 4 To Go. Hyprop Continues Disposal of sub-Saharan Retail Property Portfolio

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One month after the disposal of Achimota Mall in Accra, Hyprop is following through with their decision to reduce their sub-Saharan Africa exposure with the announcement of the sale Manda Hill in Zambia. The 42,000sqm mall, which is jointly owned by Hyprop Investments (Mauritius) Limited and by AttAfrica Limited, was sold at the December 2018 carrying value to an undisclosed investor. While this carrying value was not explicitly stated, the combined value of the AttAcq & Manda Hill was $424m according to their unaudited interim results in December 2018.

2 Down, 4 To Go. Hyprop Continues Disposal of sub-Saharan Retail Property Portfolio. Image Source: Hotels.co.zm
2 Down, 4 To Go. Hyprop Continues Disposal of sub-Saharan Retail Property Portfolio. Image Source: Hotels.co.zm

In September 2018, Hyprop made it clear that they were exploring the reduction of their exposure to sub-Saharan Africa (ex. SA) through the disposal of their portfolio of property assets worth over $630m at the time. This decision followed the unexciting performance of the sub-Saharan Africa (SSA) assets as a result of foreign exchange losses and unfavourable market conditions. In December 2018, the group reported an impairment in the SSA portfolio of R1.07 billion (c. $70m).

The disposal is in line with Hyprop’s strategy to focus its attention and capital on it’s South African and Eastern European (“EE”) businesses. A share of the proceeds from the sale will be used to reduce its USD debt in Mauritius.

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.”

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.

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