Hyprop Investments Limited (JSE:HYP) signed an agreement to acquire Table Bay Mall from Table Bay Mall Property Trust for ZAR1.6 billion on October 16, 2023. The Company will settle the Purchase Consideration utilising new and a portion of its existing undrawn borrowing facilities of ZAR2.3 billion. Table Bay Mall will remain unencumbered. In addition to the Purchase Consideration, Hyprop will pay the Sellers ZAR23.3 million on the Effective Date in respect of the cost of the Solar Panels currently being installed on Table Bay Mall.
Hyprop will complete the installation and commissioning of the Solar Panels at its cost (estimated to be circa ZAR29 million). The Purchase Consideration will be increased by 0.67% per month from 1 November 2023, compounded monthly in arrears, up to and including the Effective Date. The Purchase Consideration is subject to an adjustment account, as is normal in such transactions, to be prepared and settled no later than 70 business days after the Effective Date. The Transaction is subject to the fulfilment of the condition precedent, that, by no later than 30 April 2024, the relevant Competition Authority unconditionally approves, in writing, the Transaction, or, if the approval is subject to conditions, those conditions are acceptable to the party on whom the conditions are imposed. As on January 26, 2024, the Competition Commission has approved the Transaction without any conditions and formally referred the Transaction to the Competition Tribunal on 26 January 2024 with a recommendation for unconditional approval; and following a review process and a Tribunal hearing, the Competition Tribunal has granted their final decision and approved the Transaction without any conditions being imposed on any party. The only remaining conditions precedent is the transfer of the property to Hyprop, which is anticipated to take place in mid March 2024.