Hyprop Investments Limited reached an agreement with African Land Investments to acquire 87 per cent of its issued shares for a consideration of 768 million rand. Attacq Limited is set to acquire 12.4 per cent of the issued shares for a consideration of 110 million rand.
Kevin Teeroovengadum, the chief executive of African Land Investments, will own 500,000 shares.
“This investment by [DATA HYP:Hyprop Investments Ltd.] and [DATA ATT:Attacq Ltd.] demonstrates the strength of the African Land story and the growing stature of the sub- Saharan African real estate market. We are delighted to have attracted investors of this calibre; the expertise and networks that they bring will super-charge our efforts to meet African Land’s vision,” said Teeroovengadum.
African Land owns the Manda Hill Shopping Centre, situated in Lusaka, Zambia and is expected to invest in existing retail and commercial real estate assets in Ghana, Kenya, Mozambique, Nigeria and Uganda as well.
The investment by Hyprop and Attacq in African Land has resulted in the real estate investment fund cancelling its original plan to list on the Johannesburg Stock Exchange and the Lusaka Stock Exchange.
“The acquisition is an attractive investment and complementary to Hyprop's strategy of investing in high quality shopping centres across the African continent,” said Pieter Prinsloo, the chief executive of Hyprop Investments Limited.
“African Land's strategy of acquiring existing income-producing properties supports Hyprop’s strategy and will provide Hyprop with geographical diversification as well as further investment opportunities in Africa. The investment in African Land, together with Attacq, will also complement Hyprop’s existing partnership with Attacq in Atterbury Africa, which focuses mainly on new developments.”