Hyprop raises R580 million in an oversubscribed bond auction

Hyprop raises R580 million in an oversubscribed bond auction, signalling strong market confidence

Hyprop Investments, a retail-focused JSE and A2X-listed Real Estate Investment Trust, today announced a successful bond issuance, raising R580 million in a highly oversubscribed auction. The Group initially targeted R500 million, with an option to increase it to R600 million. The auction attracted overwhelming investor interest, and total bids reached R3.1 billion, more than five times the targeted amount. The outcome highlights strong investor demand, reinforcing Hyprop’s position in the capital markets.

Final price guidance was set at 100–110 basis points (bps) for 3 years and 115–125 bps for 5 years. Hyprop accepted bids at record-low margins of 94 bps for 3 years, totalling R273 million, and 111 bps for 5 years, totalling R307 million. These are the lowest margins achieved by the Group in a bond auction.

This achievement improves on Hyprop’s R450 million private placement in April 2025 and a R750 million public auction in May 2025, at margins of 117 bps (3.5 years) and 125 bps (5 years). The latest auction outcomes underscore investors’ growing appetite for Hyprop’s credit: total bids below the price guidance levels were R1.4 billion (nearly 3 times the targeted amount). Notably, 91% of the accepted bids (and 87% of total bids) were from institutional investors other than banks.

“The strong backing from investors and successful outcome of our bond auction are gratifying and reflect the market’s confidence in our business and future outlook,” said Brett Till, Chief Financial Officer at Hyprop. “We will deploy the proceeds to proactively manage our maturing debt and advance our strategic priorities, including funding earnings-enhancing capital expenditure across our South Africa and Eastern Europe portfolios.”

This issuance is part of Hyprop’s broader funding strategy to diversify and optimise its capital base and structure. The Group employs a staggered approach that balances both its short- and long-term debt maturities to mitigate refinancing risks, which ultimately supports its long-term growth plans.

Itumeleng Mothibeli

Connect on LinkedIn

Managing Director – Southern African division of Vukile Property Fund

Itumeleng Mothibeli

Chairperson of the Research Committee

Itumeleng Mothibeli is the Managing Director for the Southern African division of Vukile Property Fund, a real estate investment trust (REIT) listed on the Johannesburg Securities Exchange. He oversees a substantial property portfolio valued at around R16 billion. His role includes setting the strategic direction, leading a team of 13 senior managers, and handling operations that generate over R1 billion in net property income annually. His operational focus includes property redevelopment, reducing vacant space, and aggressive financial management. Itu’s journey with Vukile began in 2012 when he was hired as an Asset Manager. He was promoted in 2017 to oversee the asset management department and then took on the leadership of the entire Southern African business in 2019. The swift progression speaks to his proficiency in real estate investment and management.

Before joining Vukile, Itu started as a Research Analyst in real estate at Old Mutual Property in 2007. Here, he specialised in researching opportunities in African and International Emerging Markets. He later joined the Old Mutual SRI Real Estate Fund, where he was part of a small investment team that grew the fund’s assets from R158 million to R520 million in just two years. His focus was primarily on portfolio performance management and driving operational efficiencies.

Itu holds a BCom in Accounting & Management, an MCom in Financial Management and an MPhil in International Business. With 15 years of experience in real estate investment, five at the executive level, he brings a wealth of knowledge to his role. Outside his professional commitments, Itu is dedicated to sustainable business practices and community involvement, notably with the Eluxolweni Children’s Shelter. He also enjoys ultra-marathon running in his spare time.

This will close in 0 seconds