Hyprop considers a stake in Edcon
The mall owner has a strong interest in the retailer’s survival, given that the owner of Edgars, Jet and CNA occupied 9.2% of its gross lettable area at the end of December
Blue-chip mall owner Hyprop Investments says it might take a stake in Edcon to support the struggling group, which is Southern Africa’s biggest non-food retailer. Hyprop has a strong interest in Edcon’s survival, given that the owner of Edgars, Jet and CNA occupied 66,781m² of space in Hyprop’s malls at the end of December, or 9.2% of its gross lettable area. Edcon needs about R3bn to survive for the next three years, CEO Grant Pattison told journalists in February. Hyprop has been working with Edcon to reduce the retailer’s space requirements. The companies had agreed that 7,563m² would be vacated in the short term, Hyprop said on Friday. “New tenants have been secured for most of this space and Hyprop is confident of its ability to re-let the balance.” Hyprop had also agreed to support Edcon as part of the retailer’s proposed restructuring. This “may include Hyprop subscribing for an equity interest in Edcon”. If the deal were to go ahead, this would reduce Hyprop's distributable ...
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