NOTES TO THE FINANCIAL STATEMENTS – NOTE 4

4. Subsidiaries
4.1 Investment in subsidiaries

Details of the group’s subsidiaries at the end of the year are as follows:

Name of subsidiary Principal activity Place of
incorporation
and operation		   30 June 2015   30 June 2014  
Hyprop Investments (Mauritius) Limited (Hyprop Mauritius) Acquiring indirect development or income producing property investments in sub-Saharan Africa (excluding SA) Mauritius   100%   100%  
African Land Investments Limited (African Land) Currently dormant. In 2014 the principal activity was acquiring income producing investment property in sub-Saharan Africa (excluding SA) South Africa   100%   100%  
Word4Word Marketing Proprietary Limited (Word4Word) Marketing services South Africa   100%   100%  
Hyprop Investments Employee Incentive Scheme Proprietary Limited (Hyprop Investments Employee Incentive Scheme) To hedge the obligation of the company to deliver Hyprop shares to employees, arising from allocations to employees in terms of the Hyprop Employee Incentive Scheme South Africa   100%   100%  
Hyprop Foundation NPC (Hyprop Foundation) Company formed to further sustainability, enterprise development, socio-economic development and the corporate social initiatives of Hyprop South Africa   100%   100%  

  Notes   GROUP
June 2015
R000		   GROUP
June 2014
R000		   COMPANY
June 2015
R000		   COMPANY
June 2014
R000		  
Hyprop Mauritius             *   *  
The company acquired 100% of the issued capital in Hyprop Mauritius for USD1. Hyprop Mauritius holds a 37,5% interest in AttAfrica. Refer to note 6.                    
African Land                    
The company acquired 87% of African Land on 5 December 2013. Until its restructure, African Land indirectly held a 100% interest in Manda Hill Centre. Refer to note 34. Following the restructure of African Land, Hyprop became its sole shareholder.                    
Cost                 758 264  
Reallocate to investment in subsidiaries/(2014: transfer to assets held for sale) 13           758 264   (758 264)  
Balance at end of year             758 264      
Word4Word                    
Cost allocated to Word4Word             29 566   29 566  
Impairment             (29 566)   (25 286)  
Balance after impairment 9               4 280  
Hyprop Investments Employee Incentive Scheme                    
Cost             11 068   11 068  
The company was incorporated on 19 September 2013.                    
Hyprop Foundation                    
The company was incorporated on 17 September 2013.                    
Total investment in subsidiaries             769 332   15 348  
* Amounts less than R1 000

Subsidiaries and transactions with non-controlling interests

Set out below is summarised financial information for African Land, in which Hyprop had an 87% share as at 30 June 2014. African Land became a wholly owned subsidiary of Hyprop effective 1 July 2014. The amounts disclosed are based on those included in the consolidated financial statements, before the elimination of intercompany balances.

  GROUP
June 2015
R000		   GROUP
June 2014
R000		   COMPANY
June 2015
R000		   COMPANY
June 2014
R000		  
Summarised statement of financial position                
Current assets 13 252   7 393          
Current liabilities (10 807)   (22 404)          
  2 445   (15 011)          
Non-current assets 771 230   1 644 235          
Non-current liabilities     (603 259)          
  771 230   1 040 976          
Net assets 773 675   1 025 965          
Non-controlling interest nil   133 237          
Summarised statement of comprehensive income                
Revenue nil   77 953          
Net (loss)/profit (118 830)   62 393          
Total comprehensive (loss)/income (118 830)   62 393          
Profit allocated to non-controlling interest nil   8 103          
Dividends paid to non-controlling interest 495   4 539          
Summarised cash flows                
Cash flows from operating activities (24 369)   (695 086)          
Cash flows from investing activities 768 761   (818 440)          
Cash flows from financing activities 728 140   1 501 920          
Significant restrictions                
None                
Significant restrictions                
None                
   
    GROUP
June 2015
R000		   GROUP
June 2014
R000		   COMPANY
June 2015
R000		   COMPANY
June 2014
R000		  
4.2 Dividends received from subsidiaries                
  African Land         14 941   30 308  
  Hyprop Mauritius         27 678   4 770  
  Word4Word         1 500   1 500  
  Hyprop Investments Employee Incentive Scheme         753   365  
  Total dividends received         44 872   36 943  
4.3 Disposal of subsidiary

During the financial year, pursuant to its restructure arrangements, African Land disposed of its subsidiary companies, Manda Hill Centre Limited and African Land Investments Ireland Limited. The effective date of the African Land restructure was 1 July 2014. The restructure entailed the following:

African Land disposed of its investments in Manda Hill Centre and African Land Investments Ireland to MHPC Limited, which is 100% owned by Manda Hill Mauritius Limited
African Land bought back its shares, from the non-controlling parties and Hyprop became the sole shareholder of African Land
African Land advanced a loan to Hyprop.

The values of the assets and liabilities disposed of were as follows:
      GROUP
June 2015
R000		  
    Building appurtenances and tenant installations 25 552  
    Investment property 1 618 506  
    Trade receivables (including income in advance) (1 988)  
    Cash and cash equivalents 8 518  
    Payables (11 815)  
    Total net assets disposed of 1 638 773  
    Loss on disposal of subsidiary (118 351)#  
    Proceeds on disposal of subsidiary 1 520 422  
    Cash and cash equivalents disposed of (8 518)  
    Total cash received 1 511 904  
    Reconciliation of loss on disposal of subsidiary to the loss on disposal of subsidiary in the statement of comprehensive income    
    Loss on disposal of subsidiary (118 351)  
    Equity-accounted gain on bargain purchase 88 340  
    Loss on disposal of subsidiary in the statement of comprehensive income (30 011)  
    African Land bought back shares held by its non-controlling interest on 1 July 2014. This resulted in an increase of 12,99% of the group's ownership in African Land. Cash consideration of R118 million was paid to the non-controlling shareholders.    
    Cash consideration paid to non-controlling shareholders (118 024)  
    Carrying value of the additional interest in African Land 115 315  
    Loss recognised in statement of changes in equity (2 709)