Iconic R1.6 billion shopping mall in South Africa’s capital city being sold

JSE-listed real estate investment trust (REIT) Hyprop plans to sell half of its stake in Woodlands Boulevard, a well-known shopping centre in Pretoria, Gauteng.

Hyprop announced on Monday, 9 February, that it has entered into an agreement to sell 50% of Woodlands Boulevard to Primegrowth Retail Property, Witfontein Mile and Twin City Trading 2.

The REIT explained that it reviews its portfolios annually and, with this sale, saw an opportunity to reduce its exposure in Gauteng and unlock capital to pursue new growth opportunities, while remaining a majority owner in Woodlands Boulevard.

Hyprop specified that it has no plans to dispose of the remaining 50% undivided share in Woodlands Boulevard.

Since opening its doors in 2004, Woodlands has served over 140.5 million repeat shoppers. The mall opened with 82 stores and was extended in 2010 to just over 150 stores.

Today, Woodlands has a gross lettable area of 73,471 m², with a weighted average rental of R206/m² per month.

Hyprop explained that proceeds from this sale will be used to pursue new investment opportunities aligned with the company’s strategic growth objectives and capital allocation strategy.

This is not the first time Hyprop has sold part of its properties to these purchasers, with the same buyers having bought Atterbury Value Mart from Hyprop in 2021.

The purchasers will pay R790.50 million for its 50% stake in Woodlands Boulevard, which includes the rental enterprise conducted thereon.

This price will escalate at 0.53% per month from 1 August 2025 to the transfer date. Each purchaser will acquire a one-sixth undivided share in the property and the rental enterprise.

Hyprop has also provided them with a rental guarantee, indemnifying the purchasers against unbudgeted negative rent reversions and unbudgeted vacancies for two years from the transfer date. 

Any rent collected which exceeds the budgeted rent during this guarantee period will be for the benefit of Hyprop.

Hyprop’s liability in respect of the rental guarantee is capped at a maximum of R10 million in the first 12-month period after the transfer date and a maximum of R10.60 million in the 12 months after. Notably, the upside to Hyprop is not capped.