The company said yesterday R65m was received at the beginning of September with the balance to be paid on transfer.
Hyprop CEO Pieter Prinsloo said Hyprop's strategy was to invest in sizable shopping centres and the hotel did not fit in with the company's long-term investment profile. "The sale will not have any material impact on Hyprop's results for the year ending December," Prinsloo said.
While the effective date of the transaction is the beginning of September, transfer will only take place once certain conditions have been met - including the opening of a sectional title register.
Hyprop's focus is on the R920m redevelopment and extension of the Rosebank Mall, which marks the first step in the company's largest development undertaking to date.
The redevelopment and extension of the mall has a lot of positives in the long term. The mall will almost double in size to 62,000m² of lettable area. It will trade during the construction period with new retail sections being phased in from as early as the second quarter of next year.
On completion of the project, the mall will boast 160 stores to dominate the retail landscape in the busy and increasingly growing Rosebank node.
The redevelopment will also connect to the new Southern Sun hotel, 54 on Bath Avenue, as well as create a north-south pedestrian walkway between the Standard Bank development on Baker Street and the busy taxi rank on Cradock Avenue, opposite Total.
By upgrading the Rosebank Mall, Hyprop plans to leverage its existing asset and create an integrated "live, work and play" environment.
The company's property portfolio is improving, with 95% of the portfolio made up of high-quality retail properties. The balance consists of offices, which Hyprop is selling to focus on its core retail property portfolio.
Source: Business Day
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