Delta City Podgorica in Montenegro.
Hyprop Investments Limited today announced that it has acquired a 60% interest in Serbian mall, Delta City Belgrade purchased from Delta Real Estate Group (Delta), a private Serbian company and Montenegrin mall, Delta City Podgorica, purchased from Hemslade Trading Limited Cyprus (Hemslade) and Delta.
Homestead Group Holdings Limited (Homestead), a company associated with Louis Norval, a non-executive director of Hyprop, has acquired the remaining 40% in both malls.
The total purchase consideration is €202 750 000, of which Hyprop’s effective share is €121 650 000. Delta City Belgrade has been purchased for €127 750 000, of which €111 942 332 is payable to Delta and €15 807 668 will be used to settle the existing bank loans. Delta City Podgorica has been acquired for a price consideration of €75 000 000, of which €60 147 681 is payable to Delta and Hemslade and €14 852 319 will be used to settle bank loans.
A newly formed United Kingdom company called Hystead Limited (Hystead) will effectively hold the ownership in both shopping centres. Hyprop has elected to acquire the shopping centres in an offshore joint venture with Homestead as it is of the view that Homestead has significant value to contribute as a result of its knowledge of the area and its access to other potential transactions.
Pieter Prinsloo, Hyprop CEO says that “these acquisitions are an attractive investment nwhich complements our strategy to acquire or develop high quality, income-producing shopping centres in emerging markets”. Prinsloo revealed that “these acquisitions may be the first of further acquisitions in Central and Eastern Europe and enhance Hyprop’s shopping centre portfolio in South Africa and sub-Saharan Africa. Hyprop’s objective is to have partial ownership of a high quality shopping centre portfolio in these regions, with a value of approximately €1 billion, within five years”.