Hyprop’s West Hills Mall, the largest shopping centre in West Africa located in New Weija, Accra, Ghana, is one of the shopping centres the group disposed of. Picture. SUPPLIED.
Hyprop has reached agreement to sell all its interests in four shopping centres in Nigeria and Ghana, which will complete its exit from sub-Saharan Africa, excluding South Africa.
The portfolio was sold to Africa-focused commercial property company Lango, in exchange for shares in Lango. The transaction was done due to Hyprop’s long-held strategy to focus on its retail centres in South Africa, particularly the Western Cape, and Eastern Europe.
“We are satisfied that we have reached an agreement, after a lengthy process, to find a suitable buyer,” said Hyprop CEO Morné Wilken yesterday in a statement.
“These four retail centres are well located and well managed, however, they no longer fit into our broader strategy. The finalisation of the disposal will afford us the opportunity to focus our energy and resources on ensuring our dominant retail assets in South Africa and Eastern Europe remain relevant, differentiated, and profitable,” he said,
Attacq’s directors said these disposals were in line with their strategy to exit sub-Saharan African markets outside of South Africa, and focus on its South African assets.
The sale of the West African assets by Hyprop had been delayed for several years, which the company attributed to Covid-19, US dollar shortages in Nigeria, and exchange rate volatility.
On a previous sale agreement, the conditions precedent for the sale of Ikeja City Mall signed in November, 2020 with a fund managed by Actis were not fulfilled, and the agreement was terminated.
The Ikeja City Mall in Lagos, Nigeria is owned by Gruppo Investments, which in turn is 75% held by a subsidiary of Hyprop, and 25% held by a subsidiary of Attacq.
Gruppo Investments is to be sold to Lango Real Estate for $32 million (R583.1m) net of debt, payable in Class A Lango shares. This will result in Hyprop holding shares worth $24.1m in Lango, while Attacq will hold $7.9m in Lango shares.
The Ghanaian centres (Accra Mall, Kumasi City Mall and West Hills Mall) are owned by AttAfrica, which is jointly owned by subsidiaries of Hyprop and Attacq. Hyprop’s effective economic interest in AttAfrica was 73.12%, and Attacq’s was 26.88%.
AttAfrica was being sold to Lango Real Estate for $27.3m net of debt, which would be paid in the form of Class A Lango shares. As a result, Hyprop would hold shares worth $19.9m in Lango, while Attacq would hold Lango shares worth $7.3m.
For both transactions, 20% of the shares will be held in escrow until the earliest of June 30, 2025 or six months after the completion date, pending the sellers fulfilling their commitment to assist the buyer with onboarding the retail centres.
Hyprop did not intend to be a long-term holder of Lango Real Estate’s shares, Wilken said.
BUSINESS REPORT
Related Topics: