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Hyprop Investments Limited

Integrated annual report and consolidated financial statements


Chairman and CEO’s



Hyprop is exposed to a number of economies that performed

very differently during the year under review. South Africa

continues to produce low levels of growth and there are no

apparent catalysts to change that. The African economies to

which we are exposed, other than South Africa, evidenced

some level of improvement over the period, albeit off low

bases. The greater European economy improved over the

period and, at the time of writing, has a more positive outlook

than has been the case for a considerable period.

The South African portfolio performed solidly during the

period despite difficult economic conditions. While our

properties displayed pleasing resilience, we were affected by

weak consumer spend and the much reported closure of three

Stuttafords stores. A large portion of the resultant vacancy had

been anticipated based on prior discussions with the tenant,

and the majority of the space has been filled. We again

invested in our assets with particular focus on the Rosebank

Mall, The Glen, Canal Walk and Clearwater Mall, and will

continue to do so to ensure that our malls remain destinations

of choice for shoppers.

In the absence of fundamental changes to the South African

economy consumers and retailers will face a difficult future

and that will impact the growth available from the South

African portfolio.

We made significant progress on the disposal of non-core

assets and anticipate the final disposals in the 2018 financial


The African portfolio produced differing results. Accra Mall,

Ikeja City Mall and Manda Hill performed soundly at an

operational level, even after the impact of some tenant

rotation and vacancies, although their results were affected by

the macro-economic conditions in the countries in which they

are located. The improvement in commodity prices in recent

months has had a positive impact on the countries concerned

with significant improvements in access to hard currency in

Nigeria, continued progress in the Ghanaian economy and

pleasing levels of economic growth in Zambia. The properties

will benefit from any continuation of these trends.

The West Hills, Achimota and Kumasi malls produced muted

performances. Although the tenant mixes are improving and

vacancies are reducing, the malls will require time to stabilise

and produce the expected returns.

A number of the African properties are being refinanced and

that process should be completed early in the new financial


We continued our expansion into South-Eastern Europe

by acquiring a 60% effective stake in Skopje City Mall in

Macedonia, and subsequent to the year-end, a 60% effective

stake in The Mall, Sofia.

We are now invested in Serbia, Montenegro, Macedonia

and Bulgaria. While Bulgaria is the only one of those countries

that is a member of the European Union, the economic

fundamentals in the other countries are sound and compare

favourably to what we face domestically.

We ensure that our business

model is sustainable and

relevant to the economies

in which we operate.


Gavin Tipper,



Pieter Prinsloo,

Chief executive officer