South African real estate investment trust Hyprop Investments said it has acquired hypermarket premises connected to its shopping centre The Mall in Bulgaria’s Sofia for 23 million euro ($26.8 million) in June.
The premises, which are currently vacant, will be refurbished and integrated into The Mall, Hyprop Investments said in a financial statement for its financial year 2017/2018 ended on June 30.
Hyprop Investments intends to introduce a 2,450 sq. m. supermarket on the premises, as well as additional line shops on a further 9,550 sq. m.
“The anticipated starting date is October 2018 and the development will take approximately six months to complete, at an estimated initial yield of 9%,” Hyprop Investments said.
The premises were occupied by French retailer Carrefour until 2016 and have been vacant since then.
In May, Billa Bulgaria, the local arm of supermarket chain Billa owned by Germany’s REWE Group, said it intends to open a new store on the premises.
In October last year, UK-based investment company Hystead Limited, which is 60% owned by Hyprop Investments, completed the acquisition of Bulgaria’s AP Retail I, owner of The Mall, for 155 million euro. The Mall has a rentable area of 51,200 sq. m