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RE-ALIGNMENT OF HYPROP INVESTMENTS STAKEHOLDERS

Release Date: 15/08/2000 14:42
Code(s): RDF
Wrap Text
NEWS RELEASE
TUESDAY, AUGUST 15, 2000

OWNERSHIP AND EFFECTIVE CONTROL OF GAUTENG'S PREMIER UPMARKET SHOPPING MECCA, HYDE PARK CORNER, HAS CHANGED HANDS.
THE CENTRE, TOGETHER WITH SEVERAL HIGH QUALITY OFFICE BUILDINGS, COMPRISES THE A-GRADE ASSETS OF JSE-LISTED LOAN STOCK COMPANY HYPROP INVESTMENTS LIMITED, THE PREMIER VARIABLE RATE LOAN STOCK (VLS) COMPANY, WHICH HAS A CURRENT MARKET CAPITALISATION OF R400-MILLION.
THE RE-ALIGNMENT OF THE SHAREHOLDING IN THE LISTED COMPANY HAS ALSO RESULTED IN A CHANGE IN THE SHAREHOLDING OF THE MANAGEMENT COMPANY RESPONSIBLE FOR DAY-TO-DAY OPERATION OF THE PORTFOLIO, AS WELL AS THE ASSET MANAGEMENT. CONFIRMING MARKET SPECULATION ABOUT THE NEW STAKEHOLDER GROUPING, REDEFINE CHAIRMAN WOLF CESMAN SAID THAT HYPROP WAS UNIQUELY POSITIONED FOR GROWTH AS IT WAS THE PREMIER LISTED PROPERTY FUND.
CORPCAPITAL BANK'S LISTED PROPERTY INVESTMENT ARM, REDEFINE INCOME FUND LIMITED, LIFTED ITS 20 PERCENT STAKE TO 32 PERCENT WITH AN INVESTMENT OF ABOUT R40-MILLION, MAKING IT HYPROP'S LARGEST SINGLE SHAREHOLDER. IN TURN, AT R120-MILLION, HYPROP BECOMES REDEFINE'S SINGLE LARGEST INVESTMENT.
CESMAN SAID THAT INDEPENDENTLY OF REDEFINE INCREASING ITS STAKES, CORONATION PROPERTY INVESTMENTS LIMITED (COROVEST), HAD ALSO INCREASED ITS STAKE IN HYPROP OVER TIME, AS HAD STANDARD BANK PROPERTIES.
THE SHAREHOLDING IN THE MANAGEMENT COMPANY HAS NOW BEEN REALIGNED TO REFLECT THE CHANGE IN SHAREHOLDING, WITH CORPCAPITAL BANK, COROVEST AND STANDARD BANK EACH HAVING A ONE-THIRD STAKE.
CESMAN SAID: "THE THREE MANAGEMENT PARTNERS SHARE THE SAME PHILOSOPHY AND SEE GREAT POTENTIAL VALUE FROM THE EXISTING PORTFOLIO AS WELL AS GROWING HYPROP IN TERMS OF ITS CURRENT SIZE WITHOUT COMPROMISING THE INTEGRITY AND QUALITY OF THE PORTFOLIO.
"HYPROP UNITS HAVE ALWAYS BEEN TIGHTLY HELD. WE WOULD LIKE TO SEE LIQUIDITY IMPROVE," CESMAN SAID.
"HYDE PARK CORNER HAS ALWAYS OCCUPIED A SPECIAL PLACE FOR PEOPLE WHO ENJOY THE SHOPPING EXPERIENCE AT ITS NUMEROUS BOUTIQUES, AND WHO SOCIALISE AT THE MANY COFFEE BARS, AND PATRONISE THE CENTRE FOR ITS ENTERTAINMENT VALUE.
"THIS APPEAL WILL BE ENHANCED SHORTLY, WITH THE OPENING OF THE R15-MILLION IMAX THEATRE," CESMAN SAID.
HE SAID THE CHANGE IN OWNERSHIP AND CONTROL OF HYPROP EMPHASISED ONCE AGAIN THE SHIFTS AND GROWTH IN THE LISTED PROPERTY SECTOR AND THE LISTING OR RE-STRUCTURING OF PROPERTY LOAN STOCK COMPANIES.
REDEFINE ITSELF CAME TO THE MARKET IN FEBRUARY AS THE FIRST HYBRID LOAN STOCK COMPANY, WITH HALF OF ITS R1,2-BILLION PORTFOLIO HELD IN DIRECT PROPERTY AND THE BALANCE IN ITS 'FUND OF FUNDS' LISTED PROPERTY COUNTERS.
CESMAN SAID: "EVERYONE TODAY WEIGHS UP INVESTMENT PROSPECTS IN THE SO-CALLED 'NEW' AND THE 'OLD' ECONOMIES. PROPERTY FALLS OUTSIDE THOSE TWO CATEGORIES BECAUSE IT HAS ALWAYS BEEN THERE. IT IS CURRENTLY HUGELY UNDER-RATED
NOTWITHSTANDING THE FACT THAT THE LISTED PROPERTY SECTOR HAS CONSISTENTLY OUTPERFORMED ALL THE OTHER INDICES ON THE JOHANNESBURG STOCK EXCHANGE OVER THE LAST THREE YEARS.
"WE ARE LOOKING AT AN AVERAGE ANNUAL YIELD OF 15-16 PERCENT, AND OVER THE NEXT TWO-THREE YEARS, EXPECT THIS TO GROW TO 18-20 PERCENT OFF CURRENT LEVELS. "IT'S FOR THIS REASON THAT WE AT REDEFINE SEIZED THE OPPORTUNITY TO
SUBSTANTIALLY INCREASE OUR STAKE IN HYPROP. TOGETHER WITH OUR PARTNERS IN THE MANAGEMENT COMPANY, WE PLAN TO EXPLORE WAYS OF ADDING VALUE."
HE SAID MANAGEMENT OF THE FUND AND ITS GROWTH WOULD BENEFIT FROM COLLECTIVE PROVEN SKILLS IN DEVELOPING AND MANAGING LARGE RETAIL CENTRES HELD BY THE THREE MAJOR INVESTORS. ENDS FAR OUT COMMUNICATION CC COMMUNICATION AND EDITORIAL CONSULTANTS
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