Hyprop Expands its Footprint in Eastern Europe through the Acquisition of Galleria Burgas in Bulgaria

Hyprop Investments Limited, a specialised retail real estate investment trust, today announced the acquisition of Galleria Burgas, a premier shopping centre on Bulgaria’s east coast, further strengthening 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 EUR 122.2 million, before adjustments. The equity portion will be funded through proceeds from the 50% sale of Woodlands Boulevard and prior capital raises. As part of the transaction, Hyprop will assume Galleria Burgas EAD’s senior debt, expected to be EUR 73.3 million at closing. As a result, Hyprop’s loan-to-value ratio will increase from 31% to 33.5%, remaining well within the Group’s internal targets.

This acquisition aligns with Hyprop’s 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 from the sale of a 50% stake in Woodlands Boulevard. These developments created an opportune time for Hyprop to acquire Galleria Burgas. The transaction will increase the Group’s exposure to Eastern Europe to 37% by gross asset value, reaffirming the Group’s focus on dominant retail centres in high-growth regions with strong asset management potential.

CEO of Hyprop, Morne Wilken, commented: “This transaction demonstrates our strong confidence in Eastern Europe’s retail real estate. Expanding in this dynamic region, specifically Bulgaria, leverages our deep market knowledge and strengthens our presence.”

In addition to the recent acquisition, Hyprop owns four other retail centres in Eastern Europe. All are located in capital cities: 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, Bulgaria’s fourth largest city and a major industrial and tourist hub. The centre serves a metropolitan population of around 400,000 and benefits from significant seasonal tourism. Burgas also has one of Bulgaria’s largest ports. The region has experienced over 15% growth in personal income in both 2023 and 2024, with consumption surging and unemployment steadily declining. Bulgaria’s adoption of the euro is expected to further enhance its appeal to tourists and investors.

Opened in 2012, Galleria Burgas offers over 100 stores across 36,700 m² of gross lettable area and underwent a major redevelopment in 2024. Tenants include major brands such as Zara, Massimo Dutti, Bershka, H&M, New Yorker, Reserved (LPP Group), Deichman, Sport Vision, Intersport, Terranova, Calliope and Cinema City. Its strategic location and diverse tenant mix make it a top retail destination in Burgas.

Hyprop plans to unlock further value at Galleria Burgas through strategic repositioning, including relocations, store reconfigurations, tenant optimisation and the introduction of new revenue streams.
Morne concluded: “We remain steadfast in our disciplined approach to capital allocation and are proactively pursuing both new and organic growth opportunities. By simplifying our business and strengthening our balance sheet, we are well-positioned for future opportunities such as this one. We are confident that our strategy and execution will continue to deliver sustainable growth and strong total returns over the long term.”

The transaction is subject to approval by the Bulgarian Commission of Protection of Competition.