Africa-Press – South-Africa. The sale of 50% Hyde Park Corner in Johannesburg for R805 million is set to be completed before the end of the year.
First announced in July 2025, the sale of Hyde Park Corner is part of Hyprop Investments’ optimisation of its assets in Gauteng.
The company provided further guidance on the sale of its holding in the shopping mall in its operational update for the four months to 31 October.
Hyprop has engaged in a strategy to increase its exposure to the Western Cape and Eastern Europe, while optimising its presence in Gauteng.
This is a significant shift from one of the country’s largest real estate investment trusts (REITs) and the largest specialised company of its kind on the JSE.
Currently, Hyprop owns nine retail centres in South Africa, with 57% of its portfolio being in the Western Cape and 43% in Gauteng.
As part of the strategy shift, Hyprop announced the disposal of a 50% undivided share in Hyde Park Corner for R805 million in July 2025.
The sale of the stake to Millennium Equity Partners puts the value of Hyde Park Corner at R1.6 billion. Millennium is a private equity fund, the General Partner of which is beneficially owned by Stanger Enterprises, TF Holdings and Nisela Private Equity.
In its latest update, Hyprop revealed that the last outstanding conditions precedent will be fulfilled before the end of the calendar year, and the disposal will be implemented in the 2026 financial year.
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.
When announcing the deal, Hyprop said the proceeds will be allocated to reducing debt in the short term and for growth opportunities within its existing operations.
Many of the company’s other malls have undergone significant overhauls in recent years, with new store launches, revamps, and additional features added.
On a shot clock
The disposal of the remaining 50% interest via a put-and-call option remains unchanged, with the agreement also being concluded in July. This should be concluded within the next two years.
Following the implementation of the transaction, Millennium and Hyprop will also become co-owners of the rental enterprise with effect from the transfer date.
Hyprop intends to sell the second half of the centre within the next two years, and this will be done through put and call arrangements with Millennium to acquire it.
The group said that it concluded an agreement with Millennium, which provides for an option to dispose of the remaining 50% of its share. This will have to be concluded by November 2027, it said.
If the call option isn’t exercised, or if it is exercised and the conditions aren’t fulfilled, Hyprop said it reserves the right to accept third-party offers for the mall in the open market, and Millennium will be obliged to sell its full share on the same terms.
As part of the transaction, 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.
Hyde Park Corner opened in 1969 and is one of Hyprop’s original investments. The mall has seen several changes to its tenant mix over the past few years, and South Africa’s retail landscape shifts and trends change.
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