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Hyprop Investments Limited
Integrated annual report 2016
Rosebank Mall, Johannesburg, Gauteng
Key to value creation
Investment excellence:
grow a specialised
portfolio of high-quality, dominant
retail property investments by pursuing
appropriate yield-enhancing acquisitions
in emerging markets
Active asset management:
maximise
efficiencies, seek expansion and
redevelopment opportunities (for existing
shopping centres)
Effective capital and debt management:
fix interest rates and increase average
period of hedged debt book
Effective leasing management:
focus on
contractual rental escalations and improve
tenant mix
Employee development, key skills
retention, diversity and succession
planning:
enhance productivity
through training and proactive focus
on black economic empowerment and
employment equity
Risks*
Low GDP growth
• Slowing consumer spend affects
trading densities and rent ratios
• Volatility of ZAR exchange rate
against USD and EUR
• Possibility of sovereign credit rating
downgrade
• Rising cost of occupancy for tenants
due to increasing municipal services
tariffs
* View full risk matrix on pages 32 to 39.
Opportunities
• Pursue appropriate yield enhancing,
quality acquisitions in emerging
markets; specifically in Eastern
Europe, which benefits from a
low interest rate environment
• Use tenant failures or lease expiries to
enhance the tenant mix in our malls
• International retailers looking to
expand locally
Material focus areas