Will Covid-19 spur consolidation among mall owners?

accreditation
Share your Subscriber Article
You have 5 articles to share every month. Send this story to a friend!
0:00
play article
Subscribers can listen to this article
Some of SA's biggest landlords are looking to offload some of their assets to reduce their debt. Photo: Getty Images
Some of SA's biggest landlords are looking to offload some of their assets to reduce their debt. Photo: Getty Images
Getty

The announcement by Hyprop Investments, the owner of Rosebank Mall and Hyde Park Corner, that it has received offers for two of its South African assets, may signal that the market is ripe for mergers and acquisition (M&A) activity in the commercial property sector as landlords find themselves under pressure to reduce their debt levels, say analysts.

Hyprop, which also owned part of Canal Walk, chose the route of selling some of its assets to lower its debt. Equity raising was not on the cards for Hyprop at the moment, said CEO, Morné Wilken. As such, the company had received offers from private property funds for two of its malls. But Hyprop was not naming the centres up for sale, or the two that have caught buyers' attention.

Support independent journalism
Subscribe to News24 for just R75 per month to read all our investigative and in-depth journalism. You can cancel any time.
Subscribe
Already a subscriber? Sign in
Rand - Dollar
15.37
+0.2%
Rand - Pound
21.03
-0.0%
Rand - Euro
17.55
-0.0%
Rand - Aus dollar
11.08
-0.0%
Rand - Yen
0.13
-0.0%
Gold
1,817.74
0.0%
Silver
22.96
0.0%
Palladium
1,883.50
0.0%
Platinum
974.00
0.0%
Brent Crude
86.06
+1.9%
Top 40
68,448
-1.1%
All Share
75,160
-1.0%
Resource 10
74,434
-1.5%
Industrial 25
94,294
-1.0%
Financial 15
15,565
-0.3%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot