Major property investor sells half of iconic shopping centre

Hyprop is a JSE-listed retail-focused real estate investment trust (REIT) with a market cap of around R17 billion and a property portfolio of around R40 billion. 

Its portfolio consists of mixed-use precincts underpinned by retail centres in South Africa and Eastern Europe.

Some of its most notable properties include Canal Walk and Somerset Mall in Cape Town, Rosebank Mall in Johannesburg, and Woodlands in Pretoria.

It also owns 100% of Hyde Park Corner, which is located in Sandton at the major intersection of Jan Smuts Avenue and William Nicol Drive.

This shopping centre boasts 118 stores, an annual footcount of 3.5 million and a gross lettable retail area of 38,750 m².

On 1 July 2025, Hyprop said it had entered into a sale agreement with MEP SPV 3, which will buy a 50% undivided share of Hyde Park Corner and the centre’s rental enterprise for R805 million.

MEP SPV 3 is a wholly owned subsidiary of Millennium Equity Partners, a real estate investment and management firm headquartered in Johannesburg. 

In addition to the 50% sale of Hyde Park Corner, Hyprop concluded an agreement allowing the option to dispose of the remaining 50% of the property.

This agreement gives Hyprop a put option and MEP SPV 3 a call option. If either party exercises their option, MEP SPV 3 would acquire the remaining 50% undivided interest in Hyde Park Corner.

Hyprop explained that the disposal of Hyde Park Corner aligns with the company’s strategy of allocating more capital to the Western Cape and Eastern Europe and focusing on regional malls rather than mid-sized ones.

The company said the proceeds from this sale will be used to reduce debt in the short term and for asset management initiatives, organic growth opportunities, further solar-PV projects, and new investments within Hyprop’s existing operations.

Issued on Daily Investor by Bianke Neethling| https://dailyinvestor.com/property/92539/major-property-investor-sells-half-of-iconic-shopping-centre/