Hyprop has announced its successful concluded agreements to dispose of Atterbury Value Mart in Pretoria for an aggregate consideration of R1.12 billion – 4.6% below the current market valuation.
The company reached these agreements with three private parties who will each acquire a one-third undivided share in the property.
The disposal of Atterbury Value Mart is in line with the company’s strategy to create safe environments and opportunities for people to connect and have authentic and meaningful experiences and its key priorities to recycle noncore assets and strengthen its balance sheet.
“The team has made a lot of progress implementing the revised strategy in the last two years, and I must commend them for concluding the agreements in a challenging environment” commented Hyprop CEO Morné Wilken.
“Balance sheet strength remains a core focus for us and the conclusion of the transaction will result in Hyprop’s see-through loan to value ratio of 41.4% of the 30th of June 2020 reducing by 1.9% to 39.5%.”
Hyprop recently also announced that 82% of shareholders elected to accept the dividend reinvestment alternative recently offered to shareholders through which it retained R777 330 708 of cash as new equity as well, strengthening the Company’s financial position. The retained cash will be used to reduce the group’s loan-to-value (LTV) further.