HYPROP TO BREAK GROUND ON NEW CENTRE WHILE EXISTING PORTFOLIO EXPANDS
In line with its continued focus on prime retail property investment, Hyprop Investments is advancing the development of Stoneridge Centre in Greenstone Park, Modderfontein. The 50 000 m² lifestyle centre is strongly positioned in the rapidly growing Greenstone/Longmeadow commercial and residential node. At the same time the fund is planning refurbishments and extensions at a number of its existing shopping centres to drive further growth in its retail portfolio.
Approval was given today to proceed with the first phase of Stoneridge Centre at a total development cost of R500 million. “Stoneridge Centre will enjoy good visibility and access from all main roads to and in the Greenstone/Longmeadow area,” says Hyprop CEO Pieter Prinsloo. He adds that together with the nearby Greenstone Mall, Stoneridge Centre will act as a catalyst of a new city centre stimulating further commercial developments close to high-density residential areas.
The centre will offer a family-oriented shopping environment focusing on convenience and variety with entertainment, open-air shopping and fitness facilities. “We look forward to the next stage of this development and are due to break ground before the end of this year,” say Prinsloo. Stoneridge Centre is scheduled to open in April 2008. It will be developed by leading SA developer Abland, which will own 10% on completion.
Abland Managing Director Dave Savage says that “Stoneridge Centre is a particularly exciting development in light of the surrounding mixed-use development node and its diversified retail offering that will complement the adjacent Greenstone Mall.”
Hyprop’s flagship centre Canal Walk in the Cape will shortly see a R12 million investment in new restaurant area, La Piazza. Prinsloo says that most of the 2 000m2 allocated to the area has been unlet since acquisition of the centre, but will now attract new restaurant tenants. La Piazza is scheduled for opening in November 2006. Other developments in the pipeline at Canal Walk include a 3 500m² extension, at a cost of R32 million, to accommodate a large new tenant and an upgrade and expansion of the existing food court area.
The Glen Shopping Centre in the southern suburbs of Johannesburg will be further extended following the success of its 6 800m2 expansion in 2005. The current 2 000m2 extension for national retail chain, Edgars, and additional parking, is scheduled for completion in April next year. It is estimated to cost R19 million in total.
Prinsloo concludes that Hyprop will continue its strategy of reinvestment in its portfolio to optimise the value of its assets, while at the same time seeking complementary development opportunities with sustainable growth prospects.
Trade in Hyprop units closed yesterday at R32,65 a unit.