Property portfolio

(excluding Rosebank Mall)

Geographical spread (excluding Rosebank Mall and Manda Hill)

Hyprop’s portfolio is dominated by retail property in high-income metropolitan areas, reinforcing its specialist profile as a shopping centre REIT. Year-on-year, the number of retail properties rose from 11 to 12 after acquiring Somerset Mall in the Western Cape. Like-for-like GLA increased by 8 433m² due primarily to tenant expansions at Canal Walk and The Glen.

GAUTENG

	Gauteng region
	2014		2013
Value at 30 June	R11,5 billion		R10,3 billion
GLA m2	403 323		417 524
GLA %	52		58

Tenant profile*

Tenants in our portfolio are categorised by grade, although these categorisations are largely subjective given the strong retail nature of the Hyprop portfolio:

WESTERN CAPE			ZAMBIA
Western Cape region     2014   2013 Value at 30 June R10,8 billion   R8,0 billion GLA m2 377 816   307 926 GLA % 47   42			Expansion into sub-Saharan Africa       2014*     Value at 30 June $153 million   GLA m2 43 400   Revenue – retail $7,3 million   Weighted average rental per m2 $21   * Relates to direct property only (Manda Hill)

Vacancy profile

Vacancies across the retail portfolio decreased to 1,2% (June: 2,1%). Vacancies in the office portfolio (5% of the total portfolio), increased to 13,8%
(June: 8,1%). Subsequent to year-end, vacancies in the office portfolio declined to 9,5%.

As at 30 June 2014, Manda Hill was fully let.

Acquisitions and disposals

During the year, we finalised the acquisition of Somerset Mall, adding another high-quality, large regional shopping centre to our portfolio. With 187 stores and over 3 800 parking bays, Somerset Mall expands the retail GLA of our portfolio by almost 67 000m².

Following the exchange of 81,5 million Sycom units for Somerset Mall, Hyprop disposed of 575 000 Sycom units for R14 million in December 2013. The remaining 2,2 million units were sold in January 2014 for R51,9 million.

During the year, Attacq exercised its option to acquire Hyprop’s 20% interest in Mantrablox (Proprietary) Limited, which owns Garden Route Mall. The shares and loan account in Mantrablox were sold for R139 million, realising a profit of R17,4 million.

Proceeds of these disposals were applied to reduce borrowings.

Held for sale

In line with our strategy of owning premium, high-quality shopping centres, Hyprop is in the process of disposing of its stand-alone office portfolio and non-core retail assets, Stoneridge Centre, Willowbridge and CapeGate Lifestyle. As a result, these assets have been classified as held for sale.

Rosebank Mall redevelopment Highlights R932 million investment with an estimated initial yield of 7%   1 000 direct and indirect additional permanent jobs at any one time   Fully let 76% national retailers = attractive destination Features of the new Rosebank Mall 62 000m2 147 Diverse tenants Refurbished infrastructure Seamless integration Multiple access points GLA (from 36 000m2) Stores (from 93) International and local brands anchored by large national tenants Lifts, escalators, ablutions and parking Between all areas and levels From major arterials Rosebank is being revitalised – capitalising on its inherent advantages of location, variety, ease of access and convenience, including a Gautrain station and several quality hotels. This is a node that is naturally pedestrian friendly. Hyprop’s Rosebank Mall redevelopment was completed in September 2014 on time and on budget, adding 26 000m2 of new retail space and 54 new stores, including leading international brands.