The highly anticipated sale of a 50% interest in Hyde Park Corner to Millennium Equity Partners has collapsed, leaving the prestigious shopping centre securely under Hyprop’s control for the time being.
It comprises a mix of retail and office space, with a total lettable area of 38,482m². The broader precinct includes the Southern Sun Hotel, which remains under separate ownership.
The deal, set in motion by a formal agreement last year in July, was contingent on a number of conditions, and Millennium had failed to meet some of them.
One of the terms of the transaction included an agreed purchase price of R805m for the 50% stake in Hyde Park Corner, payable in cash on transfer.
However, neither party disclosed the specific requirements which were not met, leading to the canning of the deal.
In addition, the option for Millennium to acquire the remaining 50% stake has also lapsed, ending an opportunity to strengthen its position in South Africa’s retail landscape, Hyprop said in a Sens announcement.
‘Lower vacancies, stronger tenant mix’
“Hyde Park Corner’s performance continues to improve, with lower vacancies, a stronger tenant mix and a new battery and solar PV project set to boost income,” Hyprop said.
Had the deal gone through, Hyde Park Corner would have become Millennium’s third asset, following The Crescent in Pretoria and the Verimark Building.
The executive chair of Millennium and founder of Nisela Capital, Richard Ngwenya, said: “While we are naturally disappointed that the transaction will not be concluded, we recognise the importance of regulatory, funding and timing considerations in transactions of this nature.
“Given the tight nature of the timelines, it was not possible to conclude the transaction within the period originally agreed to,” he said.
Ngwenya pointed out that Millennium remained committed to pursuing high-quality, long-term investments and partnerships within South Africa’s retail and mixed-use property sector.
“We continue to view prime, well-located assets with strong fundamentals as attractive opportunities, and we look forward to engaging with stakeholders on future transactions where there is mutual alignment,” he said.
The deal had been structured to be financed through a combination of R600m in debt from Absa and R205m in equity. When the transaction was announced, Hyprop indicated that it intended to exit the asset within the next two years as part of its broader portfolio strategy.
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