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2015 IN PERSPECTIVE
CHIEF EXECUTIVE OFFICER’S REPORT
continued
Clearwater Mall’s R37 million upgrade and extension is under way
and will house leading global fashion brands H&M, River Island and
Top Shop.
For the financial year 2016, the focus will remain on further
improvement and refurbishments, with R180 million already planned,
while R93 million has been earmarked for equipment replacement.
Security for our customers at our shopping centres remains a priority
and, in line with our security strategies, additional capital will be spent
to ensure we implement up-to-date technology. This cost has been
included in the capital committed for 2016.
We continue to pursue a number of masterplan expansion
opportunities at some of our shopping centres, but implementation
remains subject to planning approvals by local councils and the
commitment of key tenants.
Environmental sustainability
Hyprop is committed to implementing sustainable energy-saving
initiatives, where possible. A number of projects to improve energy
efficiency were completed during the year. To date, these have saved
over 14 million kWh with cost savings of some R16 million, through the
energy-efficient lighting replacement and solar PV projects.
Development properties
Centre name
Rentable area
m²
Hyprop’s
effective
shareholding
%
Hyprop’s
effective cost
USD000
Progress
Achimota Mall (Accra, Ghana)
14 624
28,1
27 101
Opened in October 2015
Kumasi City Mall (Kumasi, Ghana)
18 360
28,1
48 658
Under construction, opening April 2017
Waterfalls Project (Lusaka, Zambia)
9,4
1 031
Land holding
Shareholding
With Hyprop having a 100% free-float market capitalisation, trading volumes in our shares increased significantly during the period, especially in the last
quarter. This followed Hyprop’s inclusion in some of the MSCI emerging market indexes. Rising demand fuelled growth in our share price over the year,
resulting in Hyprop significantly outperforming the SAPY index, as shown below.
0,9
1,0
1,1
1,2
1,3
1,4
1,5
1,6
Share price performance
Jul
2014
Aug
2014
Sept
2014
Oct
2014
Nov
2014
Dec
2014
Jan
2015
Feb
2015
Mar
2015
Apr
2015
May
2015
June
2015
Q
Hyprop
Q
SAPY
% share traded 73,0%
50,4%
% offshore shareholders 25,0%
8,5%
June
2015
June
2014
Q1: 28,5 million*
Q4: 92,8 million*
Q3: 41,0 million*
Q2: 15,3 million*
* Number of shares traded per quarter
We successfully installed the second phase of the solar photovoltaic
plant at Clearwater Mall in August 2015. The total size of the plant
(phases 1 and 2) is 1 500kW at peak, with generating capacity of 2,5GWh
per annum.
Given the frequent electricity outages, new generators were installed
at Hyde Park Corner for full back-up power. After minor further capital
expenditure, all shopping centres in the portfolio will have sufficient
back-up power.
Sub-Saharan Africa (excluding SA)
The economic environment in Ghana and Zambia deteriorated in 2015,
partly due to falling oil and other commodity prices as well as fiscal
and trade deficits. This resulted in depreciating local currencies and
rising inflation. Both countries also experienced a severe shortage of
electricity, which affected the consumer market. Subsequent to the
implementation of an IMF loan package, the Ghanaian Cedi rebounded
by 25%.
The performance of the dominant malls like Accra Mall and Manda Hill
has remained resilient, despite the negative impact of the economic
downturn.
10
Hyprop Investments Limited
Integrated Report 2015