LISTED retail fund, Hyprop Investments, is set to raise its stake in SA Retail Properties to 49%, from the current 45%.
Hyprop hopes to acquire 9,7m-linked units in SA Retail. The group intends to pay R11 for each SA Retail-linked unit, with an alternative invitation to swap every 2,7 linked units in SA Retail for one Hyprop combined unit.
Hyprop said it had expressed interest in acquiring the additional SA Retail units in letters sent to SA Retail unit holders and fund managers.
Hyprop MD Pieter Prinsloo points out that this does not constitute a formal offer in terms of the Securities Regulation Panel rules, but reflects Hyprop’s intention to negotiate the purchase of SA Retail linked units with willing sellers.
On benefits to SA Retail unitholders, Prinsloo said with SA Retail units currently trading at R10,15, “our intended cash price of R11 a unit reflects an 8,4% premium”.
“Our swap also carries an 18,6% premium – based on Hyprop’s current trading price of around R32,50 a unit, 2,7 SA Retail units would equate to an imputed value of around R12 a unit,” stresses Prinsloo.
Hyprop’s portfolio includes Rosebank Mall, Hyde Park Corner, The Glen and The Grace in Rosebank.