Hyprop gets go-ahead to build R500m centre

Pretoria - Hyprop Investments, the listed property company, has been given approval to proceed with the first phase of the Stoneridge Centre in Modderfontein at a total development cost of R500 million.

The development of the 50 000m² lifestyle centre is in line with Hyprop's continued focus on prime retail property investment.

The company is also planning refurbishments and extensions costing more than R60 million at a number of its existing shopping centres to drive further growth in its retail portfolio.

Pieter Prinsloo, Hyprop's chief executive, said the company was given approval yesterday to proceed with the first phase of Stoneridge Centre, which would be located in the rapidly growing Greenstone-Longmeadow commercial and residential node in Modderfontein.

He said the Stoneridge Centre, together with the nearby Greenstone Mall, would act as the catalyst for a new city centre and stimulate further commercial developments close to high-density residential areas.

The centre would offer a family-oriented shopping environment focusing on convenience and variety with entertainment, open-air shopping and fitness facilities.

"We look forward to the next stage of this development and are due to break ground before the end of this year," said Prinsloo.

The centre will be developed by Abland, which will own 10 percent of the centre when it is completed. It is scheduled to open in April 2008.

Prinsloo said R12 million would be invested in a new restaurant area at Hyprop's flagship centre, Canal Walk in Cape Town. Most of the 2 000m² allocated to the area, called La Piazza, had been unlet since the centre was acquired but would now attract new restaurant tenants.

La Piazza is scheduled to opening in November.

Prinsloo said other developments in the pipeline at Canal Walk included a 3 500m² extension at a cost of R32 million.

This extension was being undertaken to accommodate a large new tenant and upgrade and expand the existing food court area.

Prinsloo said the Glen shopping centre in the southern suburbs of Johannesburg was also to be extended by 2 000m² at an estimated cost of R19 million.This extension followed the success of its 6 800m² expansion last year.

The new 2 000m² extension was for national retail chain Edgars and to provide additional parking.

It is scheduled to be completed in April next year.

Prinsloo said Hyprop would continue its strategy of reinvestment in its portfolio to optimise the value of its assets while seeking complementary development opportunities with sustainable growth prospects.

Hyprop units fell 1.07 percent to R32.30 yesterday, while the real estate sector rose 0.13 percent.

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