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HYPROP INVESTMENTS LIMITED - Update regarding Covid-19, withdrawal of guidance and update regarding Edcon Limited

Release Date: 01/04/2020 14:08
Code(s): HYP HILB06 HILB07 HILB11 HILB12 HILB10 HILB08 HILB09     PDF:  
Wrap Text
Update regarding Covid-19, withdrawal of guidance and update regarding Edcon Limited

HYPROP INVESTMENTS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1987/005284/06)
JSE share code: HYP ISIN: ZAE000190724
JSE bond issuer code: HYPI
(Approved as a REIT by the JSE)
(“Hyprop” or “the Company”)


UPDATE REGARDING COVID-19, WITHDRAWAL OF GUIDANCE AND UPDATE REGARDING EDCON LIMITED


UPDATE REGARDING COVID-19

Hyprop respects and supports the actions taken by the governments in the countries where we operate to mitigate
the spread of Covid-19. Our top priority is to protect the health, safety, and well-being of our tenants, customers
and all personnel.

Subsequent to the SENS announcement by Hyprop on 23 March 2020, South Africa entered a 21-day lock-down
period aimed at curbing the spread of the Covid-19 virus. On 28 and 29 March 2020 the governments of Nigeria
and Ghana, respectively, imposed similar lock-downs in those countries for fourteen days.

All Hyprop malls in South Africa, South Eastern Europe, Ghana and Nigeria are operating safely and effectively
in compliance with the lock-down regulations. Supermarkets, pharmacies and other essential service providers
continue to trade, and a limited number of mall entrances remain open with convenient parking close to these
stores. ATMs and other essential services are also accessible.

Our vision remains to create environments and opportunities for people to connect and have authentic and
meaningful experiences. Our malls play an important role in our communities, which we believe they will continue
to do during, and beyond, the current circumstances.

WITHDRAWAL OF GUIDANCE FOR THE YEAR ENDING 30 JUNE 2020

Shareholders are referred to Hyprop’s announcement dated 23 March 2020 relating to the impact of Covid-19 on
the Company, in which it was noted that it is not yet possible to predict or quantify the business impact of the
Covid-19 virus and the state and societal responses to it. In light of this continued uncertainty, Hyprop hereby
withdraws its distribution guidance for the year ending 30 June 2020.

UPDATE REGARDING EDCON LIMITED

Hyprop shareholders are referred to the announcement released by Edcon Limited (“Edcon”) on Thursday, 26
March 2020 regarding the impact of Covid-19 and the possible effects of the 21-day lockdown period on Edcon’s
business.

In 2019, as part of a broader landlord initiative, Hyprop agreed to contribute to Edcon’s restructuring by subscribing
for equity in Edcon on a monthly basis, based on an agreed level of rent reductions by the participating landlords.
The equity subscription by Hyprop for the six months to 31 December 2019 was R23.6 million and was deducted
in calculating Hyprop’s distributable income for the period. Hyprop’s equity interest in Edcon was fully impaired
at 31 December 2019.

Hyprop announced in its Interim Results for the six months ended 31 December 2019 that, from 30 June 2019 to
26 February 2020, it had reduced its exposure to Edcon by 16 627m². Edcon currently occupies 50 199m2 in
Hyprop’s South African malls and comprised 7.7% of Hyprop’s South African GLA, and 6.6% of Hyprop’s South
African income, for the six months ended 31 December 2019.

1 April 2020


Sponsor
Java Capital

Date: 01-04-2020 02:08:00
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