Press Office

HYPROP & ATTACQ ADVANCE AFRICAN STRATEGY WITH AFRICAN LAND RESTRUCTURE

17 July 2014

Property leaders, Hyprop Investments Limited ("Hyprop") and Attacq Limited ("Attacq") have restructured their investment in African Land Investments ("African Land"), whereby Hyprop, through its wholly-owned subsidiary, Hyprop Mauritius, will hold 50% in Manda Hill, African Land's only asset. Atterbury Africa, a joint venture between Hyprop, Attacq and the Atterbury Group, will hold the balance.  Hyprop originally acquired 87% of African Land for R768 million and Attacq 12.4% for R110 million in December 2013.

Hyprop CEO Pieter Prinsloo comments: "By integrating African Land into Atterbury Africa we have created a stronger entity with a broader depth of skills.  The joint venture partnership is well experienced and has the ability to successfully develop, acquire and manage quality shopping centres in the rest of Africa."

Attacq CEO Morné Wilken adds: "This investment will allow Atterbury Africa to capitalise on the full spectrum of the value chain from greenfields to brownfields projects, and is also in line with Attacq's diversification strategy into Africa."

Former Actis private equity director and founder CEO of African Land, Kevin Teeroovengadum will head Atterbury Africa as CEO. "Being backed by successful and experienced property experts with strong balance sheets will ensure we are well-positioned to achieve our objective of building a sizeable retail portfolio," says Teeroovengadum. Atterbury Africa will target ownership in dominant shopping centres in large cities across sub-Saharan Africa (excluding South Africa) subject to acceptable investment risk. Current income-producing properties in the portfolio include the 43 400m² Manda Hill Shopping Centre in Lusaka, Zambia, and the 19 000m² Accra Mall.

James Ehlers, Director of Atterbury Africa and Managing Director of Atterbury Property Developments in charge of new developments says: "Atterbury Africa has made strong inroads on the continent and has a solid pipeline of developments which are set for completion over the next two years". 

Recent developments include the June sod-turning event for the 27 000m² USD 110 million Kumasi City Mall in Kumasi, Ghana. This mall will feature 60 line shops and restaurants, with the possibility of further developments including a hotel.  In addition construction of the 13 000m² Achimota Mall has commenced and approval for an extension of West Hills Mall in Accra was approved. Phase 1 (27 500m²) of this mall is on track for completion in October 2014 while Phase II, which will add a further 12 000m², is set to commence during the next year.  Other expansions planned over the next two years include 15 800m² at Accra Mall and an additional 10 000m² at Manda Hill.

Prinsloo concludes: "Atterbury Africa is well placed to become a leading shopping centre fund across Africa and this restructure is a further step in expanding Hyprop's African presence."  The restructure is subject to South African Reserve Bank approval. 

Atterbury Africa's portfolio

Property

GLA (m2)

Atterbury Africa Ownership

Status

Existing centre

Accra Mall (Accra, Ghana)

       19 000

47%

 

Manda Hill (Lusaka, Zambia)

       43 400

50%*

 

Developments

West Hills Mall (Accra, Ghana)

       27 500

45%

Opening October 2014

Achimota Mall (Accra, Ghana)

       13 000

75%

Construction commenced, completion 2015

Kumasi City Mall (Kumasi, Ghana)

       27 000

75%

Construction to commence over next year

Extensions

West Hills Mall Phase II (Accra, Ghana)

       12 000

45%

Construction to commence over next year

Accra Mall (Accra, Ghana)

       15 800

47%

Construction to commence over next 2 years

Manda Hill (Lusaka, Zambia)

       10 000

50%*

Construction to commence over next 2 years 

Waterfalls Project (Lusaka, Zambia)

       12 000

25%

Land holding