South African property giant buys R2 billion shopping mall
Retail real estate investment trust Hyprop Investments has acquired the Galleria Burgas Mall, a shopping centre on Bulgaria’s east coast, for about R2 billion.
Hyprop said the acquisition would further strengthen its Eastern European (EE) portfolio with “high-quality, earnings-enhancing retail assets” across preferred geographies.
The acquisition was carried out by Balkan Retail N.V., a subsidiary of Hyprop Investments Limited, acquiring Galleria Burgas EAD, a Bulgarian subsidiary of MAS Property Holding S.R.L. (Seller) and part of MAS PLC.
The agreed gross purchase price for Galleria Burgas is €122.2 million, excluding adjustments, which is about R2.3 billion.
The equity portion will be financed with proceeds from the 50% sale of Woodlands Boulevard and prior capital raises.
As part of the transaction, Hyprop will take on Galleria Burgas EAD’s senior debt, which is expected to be €73.3 million (R1.4 billion) at closing.
Hyprop’s loan-to-value ratio will rise from 31% to 33.5%, still remaining within the Group’s internal targets.
Hyprop said the acquisition aligns with its strategy to drive new growth opportunities in the Western Cape and Eastern Europe.
In 2025, the Group raised R1.2 billion through accelerated bookbuilds and secured an additional R800 million by selling a 50% stake in Woodlands Boulevard.
These developments, according to Hyprop, created a prime opportunity for Hyprop to acquire Galleria Burgas.
Hyprop said the transaction will increase the Group’s exposure to Eastern Europe to 37% by gross asset value.
“This reaffirms the Group’s focus on dominant retail centres in high-growth regions with strong asset management potential,” said Hyprop.
“This transaction demonstrates our strong confidence in Eastern Europe’s retail real estate,” said Hyprop CEO Morne Wilken.
“Expanding in this dynamic region, specifically Bulgaria, leverages our deep market knowledge and strengthens our presence.”
Hyprop owns four other retail centres in Eastern Europe, all situated in capital cities.
These include The Mall in Sofia, Bulgaria; Skopje City Mall in Skopje, North Macedonia; and City Centre One East and City Centre One West in Zagreb, Croatia.
Galleria Burgas is located in Burgas, the fourth largest city in Bulgaria. The centre serves a metropolitan population of approximately 400,000.
Other South African property giants securing international malls
South African property giant Vukile has been progressively expanding its presence in Europe, now owning shopping centres in Spain, Portugal, and Italy.
The company also has a strong local portfolio valued at R19.5 billion, which includes township, rural, urban, and commuter shopping malls.
Following the company’s most recent annual results, Vukile CEO Laurence Rapp explained that its decision to expand in Western Europe presents a significantly different investment proposition from its rivals’.
Rapp explained that by investing in Western Europe, Vukile’s cost of capital is significantly lower than its competitors’.
This strategy has also enabled the company to attract capital from foreign investors.
In its latest annual results, Vukile announced its expansion into Italy by acquiring a 35.65% stake in the Pradera Group for £2.5 million (R54.3 million).
After the close of its financial year, Vukile purchased three shopping malls in Italy for €115 million (R2.16 billion).
The acquisition was financed through local debt and a R2.8 billion capital raise. This builds on the company’s Iberian foundation in Europe.
The expansion, which has dovetailed with notable growth in South Africa, has seen Vukile’s revenue more than double to R5.8 billion since 2022 and its profit more than triple to R6.1 billion.
Vukile’s profit in the current year exceeds its revenue due to fair value adjustments to its properties.
Photos of Galleria Burgas Mall
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