HYPROP ADJOURNS MEETINGS TO PROBE FURTHER WITH SA RETAIL UNITHOLDERS
In the interests of its unitholders, Hyprop Investments earlier today adjourned its general meetings called to vote on the company’s takeover bid for rival property fund SA Retail. The company agreed to postpone the meetings in order to canvass SA Retail unitholders about its prospects of securing a controlling interest in SA Retail, which Hyprop unitholders had indicated would influence their vote in respect of the takeover bid.
Hyprop MD Pieter Prinsloo says that the company will hold follow-up discussions with SA Retail unitholders on the benefits of the proposed transaction with Hyprop. “Hyprop’s track record of sustainable returns and proven expertise in asset management offer a preferable alternative to the current returns offered to SA Retail unitholders,” he says. His view is supported by the latest independent IPD Index which has ranked Hyprop as number 1 over a one, three, five and seven year period for achieving the best total return on direct property investment.
Hyprop last week announced a significant 91 cents distribution to unitholders for the six months to June 2005. “The upcoming distribution is 18% higher than the 77 cents distribution for the same period last year, reflecting the effectiveness of management’s acquisition strategy and our ability to unlock value in our assets,” says Prinsloo.
Hyprop’s retail-focussed property portfolio has continued to outperform the sector with proactive asset management resulting in low vacancies, successful rent renewals and controlled increases in costs. “Inflation remaining low and a further reduction in interest rates has ensured continued strong trade at our shopping centres, especially Canal Walk,” he says.
Ahead of Hyprop’s interim financial results to be announced in August, Prinsloo is upbeat about future growth prospects.
The new dates for Hyprop’s general meetings will be announced shortly.