Hyprop Investments has raised R400m in an accelerated bookbuild, which it plans to use for its organic growth pipeline and potential acquisitions.
The group had initially planned to raise R300m, but increased the amount in the light of strong demand, it said in a statement on Thursday.
The book, which is now closed, was more than four times oversubscribed at a price of R54.50 per share.
The issue price represents a 3.2% premium to the 30-day volume weighted average price per Hyprop share of R52.81 and a discount of 3.7% to the closing price of R56.58 on December 3, it said.
It will issue about 7.34-million new shares in terms of the company’s existing general authority to issue shares for cash.
The group has a capex budget for the current year of about R850m, which includes the phase 2 Somerset Mall extension, which is to be funded from existing liquidity.
It is also planning a number of solar projects in its South African portfolio and a food court upgrade in Canal Walk, which are not included in its current year capex budget.
“Hyprop seeks capital to fund these additional projects and to position itself for potential acquisitions it is evaluating, pending which it can efficiently use the proceeds to reduce debt in the short term,” it said.
Distributable income per share growth of 10%-12% for the year ending June 2026, as guided in September and reaffirmed in its pre-close operational update this week will remain unchanged by the capital raise.
The bookbuild was managed by Java Capital.
Earlier this week Hyprop said in a pre-close update that it had experienced strong growth in tenant turnover and trading density in the first four months of this financial year.
Tenant turnover rose 5.3% and trading density by 8.5% in the four-month period, compared with the same period in 2024.
“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.
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.
Since 2019, the group has increased its solar capacity by 647% with solar now supplying 13.5% of its total electricity consumption.
With Noxolo Majavu
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