JSE- and A2X-listed real estate investment trust Hyprop has announced the strategic sale of a 50% undivided share in Woodlands Boulevard for R791-million.

Strategically aligned with its long-term priorities, the transaction will unlock capital to pursue new and organic growth opportunities, reduce its exposure in Gauteng and position it to benefit from the future upside of Woodlands Boulevard, as its surrounding area continues to expand and densify.

“This transaction supports our approach to capital allocation and portfolio optimisation. Recycling capital through this strategic sale enables us to invest capital into the Western Cape and Eastern Europe, while participating in the future growth of Woodlands Boulevard via our remaining 50% undivided share, and to deliver sustainable, risk-adjusted total returns for our investors,” says Hyprop CEO Morné Wilken.

Further, the three buyers of the combined 50% stake in Woodlands Boulevard had acquired the Atterbury Value Mart, in Gauteng, from Hyprop in 2021. The investors have a proven record and are excellent partners for driving the future growth of Woodlands Boulevard, Hyprop says.

As part of the transaction, the asset management responsibilities will be jointly overseen by Hyprop and the new co-owners, which will support the long-term success and growth of Woodlands Boulevard.

The existing Woodlands Boulevard centre management team will continue in their current roles, thereby providing continuity and expertise, while property investment company Twin City will oversee the on-site property management team.

Hyprop and the buyers are committed to ensuring a seamless transition for employees, tenants, shoppers and service providers.

“Woodlands Boulevard is an excellent asset, located in an affluent and rapidly growing region, supported by robust shopping demand and ongoing investments in new developments.

“Retaining our majority 50% stake ensures we remain actively involved in the centre’s promising future and benefit from the upside that is still to come. Hyprop and the new co-owners have already agreed on the first steps towards upgrading the shopping experience at Woodlands Boulevard over the next few months,” Wilken says.

The transaction is subject to bank consent and does not require shareholder approval, Hyprop adds.

Hyprop owns portfolios valued at R42-billion, which includes premier retail centres in Gauteng and the Western Cape, such as Rosebank Mall, Somerset Mall and Canal Walk, as well as having exposure in Eastern European countries such as Croatia and Bulgaria.