JSE-listed retail-focused property fund Hyprop has entered into an agreement to sell a 50% undivided share in the Hyde Park Corner shopping centre in Johannesburg and its associated rental enterprise for R805 million.
The deal, signed on 30 June 2025, is with MEP SPV 3 Proprietary Limited, a wholly owned subsidiary of Millennium Equity Partners.
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Read: Hyprop sees ‘MAS’ opportunities in Eastern Europe
Hyprop has also secured an option to sell the remaining 50% stake of the 38 257m2 mall in the future.
In a statement on Tuesday the fund said the transaction is consistent with its strategy to allocate more capital to the Western Cape and Eastern Europe and focus on regional malls rather than mid-sized malls.
Additionally, it noted that the proceeds will be allocated to reducing debt in the short term and for asset management initiatives, organic growth opportunities, further solar-PV projects and new investments within Hyprop’s existing operations.
The move comes after Hyprop signaled its intention to expand its footprint in Eastern Europe in May, targeting new markets such as Romania and Poland through a proposed acquisition of a controlling stake in MAS plc.
Hyprop launched a conditional voluntary takeover bid in late May 2025 to acquire a controlling stake in MAS plc, a real estate developer with assets in Romania and Poland.
If successful, the deal will expand Hyprop’s footprint into those two countries, strengthening its presence in the Central and Eastern Europe (CEE) market, complementing its existing investments in Croatia, Bulgaria and North Macedonia.
Conditions for the transaction
The Hyde Park Corner deal is subject to several key conditions that must be met or legally waived. By 4 July 2025, three agreements must become unconditional: a co-ownership agreement governing the roles of Hyprop and the buyer; an asset management agreement under which Hyprop will manage the asset; and a property management agreement with JHI for daily property operations.
These agreements must be finalised and unconditional—except for any parts that depend on the main sale agreement becoming effective.
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Within ten business days of signing the transaction agreement, Hyprop’s board must approve the transaction and related agreements.
Millennium’s shareholders also need to approve the issuance of a parent guarantee, as required by company law.
Additionally, ABSA Bank, which currently holds a mortgage over the property, must agree to release the portion of the property being sold and approve the change in ownership, provided at least half of any outstanding debt is paid upon transfer.
Other major conditions include regulatory and financial approvals. By the 90th business day after signing, South African competition authorities must approve the deal.
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Millennium must provide two bank guarantees to Hyprop: one for at least R600 million by 31 August 2025 to cover the debt-financed portion of the sale price, and another—within 20 days after competition approval—to guarantee the equity-funded balance of the R805 million transaction.
“We are pleased to announce the successful sale of a 50% stake in Hyde Park Corner. The intention is to exit Hyde Park Corner within the next two years, through put and call arrangements with the current purchaser for Hyprop’s remaining 50% stake. Until then, Hyprop will maintain the asset management responsibilities,” said Morne Wilken, CEO of Hyprop in a statement.
“The transaction marks a significant milestone for the group, as we have made it a priority to recycle at least one asset.”
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