Despite weak economic growth and competition from online gambling, Canal Walk’s owner Hyprop says its centres in Gauteng and the Western Cape held their ground.
The group said in its pre-close update that strong growth in tenant turnover and trading density in the first four months of this financial year positioned it to be on track to meet its guidance of delivering 10%-12% growth in distributable income per share for the year to end-June.
“Some highlights of this period included two firsts at Canal Walk: the opening of South Africa’s first Oakley store and Hisense stores. At Table Bay Mall, our latest addition to the South African portfolio, which is performing in line with expectations, we have submitted an application for an additional 20,000m² of bulk to expand the centre,” the group said.
Tenant turnover rose 5.3% and trading density by 8.5% in the four-month period, compared with the same period in 2024.
Record opening
At Clearwater Mall, the first Walmart-branded store in Africa opened on November 22, drawing about 86,000 shoppers on the first day, well above the usual Saturday average of 37,000, it said.
Hyde Park Corner got a boost from seven new store openings, including CheckersFreshX, helping foot traffic rise steadily, with October 2025 numbers up 12% year on year.
The group said the phase two expansion at Somerset Mall is progressing smoothly, with the first section — focused on affordable luxury and athleisure — opening on November 20. The new food court and entertainment facilities, also part of phase two, are expected to be completed by July.
“The final condition for the sale of a 50% stake in Hyde Park Corner, agreed in July for R805m, is expected to be fulfilled before the end of the calendar year,” Hyprop said.
It said another disposal is under negotiation and will be announced once the agreements are finalised.
“We are well positioned to capitalise on future growth opportunities aligned with our diversification strategy, leveraging our existing teams and the quality and resilience of our current portfolio,” CEO Morné Wilken said.
The group reported R873m in cash and R2.3bn in available bank facilities on October 31, driven by strong tenant collections of 102% in South Africa and 97% in Eastern Europe.
It paid a R502m bond due at the end of November from existing cash while another maturing in April will be settled either in cash or refinanced through an auction, it said.
Hyprop reported zero vacancies at its eastern European centres in October. Tenant turnover rose 2.9% and trading density climbed 3.1%, keeping pace with regional inflation.
Among the four centres, a highlight was securing approval in September for additional development rights for the two Croatian centres. Hyprop said it is working on the plans for the 14,000m² extension at City Center one East and the project will commence mid-2026, pending the timely receipt of all other necessary approvals.
Since 2019, the group has increased its solar capacity by 647% with solar now supplying 13.5% of its total electricity consumption.
The group reported its efforts to reduce water consumption are delivering results: in the 11 months to end-October, water usage fell by 68,000 kilo litres, saving more than R6m.
“Hyprop is now in a growth phase, be it organic or new opportunities, and we are excited about the future prospects. The group’s stability, strong balance sheet, proven track record and prudent management put us on a good footing to deliver continuous sustainable growth for all our stakeholders,” Wilken said.
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