The debentures are irrevocably linked to the ordinary shares of the company and can only be traded together with the shares.

In terms of the Hyprop Debenture Trust Deed, interest on the debentures is calculated in accordance with a distributable earnings formula.

Interest payable on the debentures is determined in arrears once the distributable earnings have been determined in accordance with the Debenture Trust Deed. In aggregate, not less than 100% of distributable earnings must be distributed to debenture holders through the payment of debenture interest. The board, in terms of the Debenture Trust Deed, is permitted to exercise its discretion to round any fraction of a cent in distributable earnings per combined unit down to the nearest whole cent. Debenture interest is paid to unitholders within three months of the expiry of a financial period.

The right of redemption of the debentures may be exercised only by special resolution of the debenture holders passed within 90 days after 25 January 2023 or every 10th anniversary thereafter.

The debentures are redeemable at their par value on the last Friday in December of the fifth year after which the debenture special resolution is passed.

The debenture premium is measured at amortised cost based on the remaining period to redemption. A risk-free bond rate (based on the R186 government bond of 8,3%) (2013: 7,87%) is used and adjusted for risk factors applicable to the company.

The Hyprop Debenture Trust Deed is available for inspection by combined unitholders or their duly authorised agents at the registered office of the company.

Subsequent to year end, the capital structure of the company was restructured to do away with the debentures and capitalise them to stated capital. Refer to note 38.