Table Bay Mall Sold for R1.6 billion

Hyprop, the retail property group, has acquired Table Bay Mall in the Western Cape for R1.625 billion. The acquisition includes 100% ownership of the commercial letting enterprise, encompassing the property, lease agreements, and the ongoing solar panel installation. Hyprop justified the purchase by highlighting the mall’s strong growth potential, situated in an area poised for expansion.

The 67,500 square metre mall, located in Sunningdale, is expected to benefit from above-average growth driven by residential development trends favouring the Western Cape. The high-growth node surrounding the mall is earmarked for 5,000 to 7,500 additional residential units over the next five to ten years, attracting medium to high-income earners.

Hyprop sees the Table Bay Mall acquisition as an opportunity to obtain a premium retail property at fair market value early in its life cycle. The company aims to unlock growth through active asset management, optimizing tenant mix, and leveraging its retail property management expertise.

Table Bay Mall’s net property income for the year ending February 28, 2023, was R108.6 million. Hyprop projects the net property income before depreciation for November 1, 2023, to October 31, 2024, at R125.7 million. The transaction is subject to competition clearance and other conditions, with a target completion date of no later than April 30, 2024.

In addition to the mall acquisition, Hyprop will pay R23.3 million to the sellers for the ongoing solar panel installation. The company will cover the estimated R29 million installation and commissioning costs.

The sale of Table Bay Mall aligns with a trend of major retail centres changing hands amid challenging trading conditions. In September, Baywest Mall in the Eastern Cape sold for R1.3 billion as part of a broader R7 billion Rebosis properties sale. The largest shopping mall in the Free State, Loch Logan Waterfront in Bloemfontein, was put up for sale by closed tender in the same month. While larger malls shift ownership, smaller but substantial retail centers are emerging, particularly in remote areas or regions experiencing population growth.