| NOTES TO THE FINANCIAL STATEMENTS – NOTE 36 |
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Hyprop’s capital consists of equity and long-term debt in the form of bank debt and debt capital market funding. The company’s capital
management objective is to maintain a strong capital base to provide sustainable returns to shareholders over the long term. The company’s
borrowings are limited by its Memorandum of Incorporation and the JSE Listings Requirements to 60% (2015: 60%) of the directors’ bona fide
valuation of the consolidated property portfolio.
Hyprop’s unutilised borrowing capacity can be summarised as follows:
| |
GROUP
June 2016
R000 |
|
GROUP
June 2015
R000 |
|
| Value of property portfolio* |
33 368 587 |
|
28 565 526 |
|
| 60% thereof |
20 021 152 |
|
17 139 316 |
|
| Total gross borrowings (long term and short term) |
9 926 088 |
|
6 691 909 |
|
| Unutilised borrowing capacity |
10 095 064 |
|
10 447 407 |
|
* Refer to Segmental analysis
At year-end, long-term borrowings may become payable in accordance with the terms of the loan arrangements. The group’s policy is to
refinance borrowings (in line with its capital objective above), whilst servicing interest. Following year-end R1,2 billion of bank debt matured.
This was refinanced with debt capital market funding and accordingly no cash outflow was required to settle the maturing bank debt. |
| NOTES TO THE FINANCIAL STATEMENTS – NOTE 36 |
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