An aerial view of Somerset Mall in the Western Cape. The mall opened the retail portion of its Phase 2 expansion project in November. The food and entertainment element of the Phase 2 project is progressing.
Image: Supplied
Hyprop Investments, owner of many key South African shopping centers such as Canal Walk, Hyde Park Corner, and Rosebank Mall, is trading well and has brought a range of new store brands to its malls over the past year.
In South Africa, its retail store vacancies are low at an industry-beating 3.3%.
"We are encouraged by the resilience of our portfolios in South Africa and Eastern Europe, which is evident in our latest operational update. Our strategy to focus on high-quality retail centres, optimising our tenant mix, and disciplined capital management is delivering pleasing results," said CEO Morne Wilken.
Tenants’ turnover increased by 5.5% in the group’s SA retail portfolio, while trading density grew by 4.4%. Foot count increased by 2.1%, underscoring a growing appeal of these centres.
In the Western Cape, Canal Walk - the Western Cape’s only super-regional shopping centre - continued its growth trajectory, driven by strong leasing momentum and high-profile store openings. Recent openings include Anta, True Religion, and Liverpool FC’s first African store.
Somerset Mall opened the retail portion of its Phase 2 expansion project in November, and several new brands include Anta, Truworths, and Office London. The food and entertainment element of the Phase 2 project is progressing well.
CapeGate is enhancing its offering through upgrades and tenant relocations, including an Edgars redevelopment project that entails rightsizing the Edgars store, expanding Sportscene, and introducing JD Sports and Freedom Adventure Park.
Table Bay Mall, acquired in October 2023, continued its strong growth trajectory, attracting a dynamic mix of retailers such as Faithful to Nature, MiMi-Q, and Krumble, and has executed meaningful upgrades.
In Gauteng, Hyde Park Corner welcomed Bootlegger Coffee, Marc’s by Marc Jacobs Café, the first-ever permanent Marc Jacobs Café and the first designer café on the African continent, as well as UNIQ.
Rosebank Mall has reduced its vacancy rate from 2% to 1.3%. Recent store openings include FARO, Wellness Warehouse, Lupis, and Livo.
Clearwater Mall completed several projects, including a dedicated e-hailing zone, new upper-level parking systems and infrastructure, and new ClearVu fences around the centre’s boundary.
At Woodlands, the passage widening project and reconfiguration of the area around Pick n Pay are on track for completion in November 2026. With key upgrades including new tiling, lighting, and store facelifts, the project will unlock valuable new retail space, enhance the shopper experience, and drive increased foot traffic.
The Glen added an Ai-CHA kiosk (an international ice cream and beverage brand) and is relocating the Dial-a-Bed store to accommodate the Value Co expansion project.
Hyprop, which also owns a portfolio of shopping centres in Eastern Europe, says it remains on track to meet its robust guidance of 10% to 12% growth in distributable income per share for the year to June 30.
The liquidity position of the company remains strong, with R1.7 billion in cash and R2bn in available bank facilities as of May 31, 2026, and the loan-to-value ratio has been reduced to below 30% following the disposal of the 50% share of Woodlands Boulevard. Bond and loan facilities were recently refinanced at lower margins.
Hyprop also owns four retail centres in the capital cities of Bulgaria, North Macedonia, and Croatia in Eastern Europe, where the vacancy rate by the end of May 2026 was 0%, indicating very high tenant demand. Tenants’ turnover increased by 4.4%, while trading density rose by 4.2%. Foot count increased by 5%.
City Center one West in Croatia is strengthening its market position through tenant upgrades and space optimisation.
At City Center one East, a highlight was Sephora launching its first Croatian store in April, attracting a record number of shoppers.
Skopje City Mall in Macedonia started a 12-month redevelopment project for Inditex.
In May 2026, Hyprop announced the acquisition of Galleria Burgas in Bulgaria.
The group’s liquidity position remains strong, with R1.7bn in cash and R2bn in available bank facilities as of May 31. The loan-to-value ratio reduced to below 30% following the disposal of the 50% share of Woodlands Boulevard.
BUSINESS REPORT