Top shopping mall in South Africa’s richest city sold

Hyprop is selling 50% of Hyde Park Corner—worth R1.6 billion—to Millennium Equity Partners.

Hyprop entered into a sale of rental enterprise agreement with MEP SPV 3 Proprietary Limited, a subsidiary of Millennium Equity Partners, to dispose of 50% of the shopping centre for R805 million.

The mall owner has also concluded an agreement, which provides for the option to dispose of the remaining 50% in the future.

Millennium is a private equity fund, the General Partner beneficially owned by Stanger Enterprises, TF Holdings and Nisela Private Equity.

The value of the net assets and the profits attributable to the net assets are R1.6 billion and R47 million, respectively.

Hyde Park Corner has a retail GLM of 38,750sqm and is situated in one of South Africa’s wealthiest areas, with President Cyril Ramaphosa’s primary residence nearby.

The mall primarily caters to the wealthiest in Sandon. It features a Woolworths, Nu Metro, Exclusive Books, Jo Malone and a new Checkers store.

Hyprop said the transaction is consistent with the company’s strategy to allocate more capital to the Western Cape and Eastern Europe.

The company is also looking to focus on regional malls rather than mid-sized malls. The company owns Canal Walk, Rosebank Mall, Table Bay Mall and Somerset Mall.

The proceeds from the sale will be allocated to reducing debt in the short term and for asset management initiatives, further solar-PV projects and new investments within its existing operations.

Hyprop also provided Millennium with a net operating income guarantee.

This indemnifies Millennium against any shortfall in net operating income of R70 million for a year from 1 July 2025. The maximum shortfall amount is R20 million for the 12 months.

The mall is internally asset-managed by Hyprop, and the property management function will soon be outsourced to JHI.