Hyprop says its DionWired stores are operating as normal
The blue chip mall owner allays fears of potential problems caused by DionWired store closures
Hyprop Investments, the owner of blue chip shopping centres such as Rosebank Mall, Hyde Park Corner and Canal Walk, said on Tuesday that its tenant, electronics retailer DionWired, is trading normally, despite concerns about its future.
DionWired is owned by JSE-listed national retailer Massmart, which is majority owned by American multinational Walmart.
Massmart said on Monday that it could close 34 under-performing DionWired and Masscash stores in 2020, which would affect about 1,440 jobs. The move is part of a turnaround strategy under new CEO Mitchell Slape.
Hyprop is a real estate investment trust (reit) which is invested in SA, Sub-Saharan Africa and Eastern Europe, with a market capitalisation of R14.5bn.
Since 2017, Hyprop has successfully filled vacant space left by the demise of department store group Stuttafords and closures of Edcon group stores. The 5,971m² Edgars store in the Rosebank Mall closed recently.
Hyprop has DionWired stores in the Western Cape in Canal Walk and Somerset Mall, and in Johannesburg at Hyde Park Corner. These stores represent 0.5% of its total SA retail gross lettable area and 0.5% of its total SA basic retail rental income. Its SA assets earned revenue of R3bn in the year to June 2019 and net operating income of R1.9bn.
“The [DionWired] stores are currently open and trading as normal,” the company said
There are no DionWired stores in Hyprop’s Sub-Saharan African or Eastern European portfolios.