Hyprop: Guarantee given on unit’s $100m loan

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HYPROP has been authorised by its board to provide financial assistance to Hyprop Investments Mauritius for a $100 million (R1.06 billion) bank loan raised by its wholly owned subsidiary. The financial assistance is in the form of a guarantee over the loan. Hyprop, a JSE-listed retail property fund, said on Friday that the loan raised by Hyprop Investments Mauritius would be used to facilitate the restructuring of Hyprop’s investment in African Land Investments and advance loan funding to Atterbury Africa for ongoing development in sub-Saharan Africa outside of South Africa. Hyprop agreed in November last year to acquire 87 percent of the issued shares in African Land Investments, which owns the Manda Hill shopping centre in Lusaka, Zambia, and aims to grow its portfolio by acquiring predominantly retail properties in the rest sub-Saharan Africa, for R768m. Attacq, previously Atterbury Investment, which listed its R12.5bn commercial and retail property assets on the JSE in October last year, acquired 12.4 percent of the issued shares of African Land Investments for R110m, while African Land chief executive Kevin Teeroovengadum owns 500 000 shares in the company. Hyprop said on Friday that its board was satisfied that the terms under which the financial assistance was proposed to be given were fair and reasonable to Hyprop in terms of the Companies Act. Hyprop gained 0.54 percent to R86.25 on Friday. – Roy Cokayne

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