Deals

Hyprop Investments Ltd – ABB

South Africa

May 31, 2018

Standard Bank acted as the Sole Bookrunner and Transaction Sponsor on the R783 million (USD62 million) primary capital raised by Hyprop Investments Limited (“Hyprop”), executed by means of an accelerated bookbuild in May 2018. 

Hyprop is a leading specialist shopping centre Real Estate Investment Trust (REIT) which operates a portfolio of shopping centres in major metropolitan areas across South Africa, sub-Saharan Africa and South-Eastern Europe. The company’s strategy is to own high-quality shopping centres where assets can be acquired or developed at attractive yields. Hyprop shopping centres aim to be in preferred locations for local and international brands and to attract new quality concept and flagship stores. 

In light of strong demand, the offer was upsized from the initial target of R 600 million (USD 48 million) to the maximum size permissible under Hyprop’s general authority to issue shares for cash. 

The book was oversubscribed and consisted of 33 unique investors, reflecting strong demand across long-only accounts (49%), private wealth (38%) and hedge funds (13%). 

A total of R783 million (USD62 million) was raised which equated to 3.0% of the company’s pre-money issued share capital. Shares were issued at ZAR105.00 representing a 4.7% discount to the previous day’s close. The proceeds raised were used to repay debt. 

This transaction evidences Standard Bank’s position as the leading ECM franchise in South Africa, the strength of our local equity distribution platform and our growing presence as a leading full-service investment bank to the real estate sector.

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