Hyprop Investments Ltd., the JSE-listed real estate investment trust, has agreed to buy Galleria Burgas, a prime shopping centre on Bulgaria’s Black Sea coast, as it deepens its push into Eastern Europe.
The South African property group will acquire the centre through its wholly owned subsidiary, Balkan Retail NV, which is buying 100% of the shares in the owning company from a unit of MAS PLC. The transaction values the property at €122.2 million before working capital and net debt adjustments.
Hyprop will assume existing senior debt of about €73.3 million, resulting in an equity outlay of roughly €53.5 million, including working capital adjustments. The deal is expected to be funded from existing cash resources, supported by capital raised in 2025 and proceeds from the earlier sale of a stake in Woodlands Boulevard.
The acquisition aligns with Hyprop’s strategy to increase exposure to Eastern Europe, a region the group believes offers superior risk-adjusted returns. Hyprop Europe has operated retail assets in the region for over a decade, including in Bulgaria.
Galleria Burgas, built in 2012 and extensively renovated in 2024, spans 36,700 square metres of gross lettable area. The centre features a strong tenant mix including Inditex brands (Zara, Bershka, Massimo Dutti), H&M, New Yorker, LPP, Deichmann, and Cinema City.
Located in Burgas — Bulgaria’s fourth-largest city and a key industrial port and summer tourist destination — the asset is positioned to benefit from rising personal incomes, falling unemployment, and the country’s adoption of the euro in January 2026.
Hyprop says the acquisition will be accretive to distributable income per share on an annualised basis. The group’s loan-to-value ratio is expected to rise modestly to 33.5% from below 30% post the Woodlands disposal, remaining comfortably below its 40% maximum target. The impact on net asset value per share and interest cover is described as marginal.
The transaction remains subject to standard conditions, including lender approval, release of cross-guarantees, and clearance from Bulgaria’s competition authority.
Posts
0 Comments