Hyprop Investments Limited is acquiring Galleria Burgas, a premier shopping centre on Bulgaria’s east coast for €122.2 million (before adjustments).

The acquisition is being carried out by Balkan Retail N.V., a subsidiary of Hyprop, acquiring Galleria Burgas EAD – a Bulgarian subsidiary of MAS PLC.

The equity portion will be funded through proceeds from the 50% sale of Woodlands Boulevard and prior capital raises. As part of the acquisition, Hyprop will assume Galleria Burgas EAD’s senior debt, expected to be €73.3 million at closing which will result in Hyprop’s LTV increasing from 31% to 33.5%.

The REIT says the acquisition aligns with its strategy to pursue new growth opportunities in the Western Cape and Eastern Europe. In 2025, it raised R1.2 billion through accelerated bookbuilds, securing an additional R800 million from the sale of the 50% stake in Woodlands Boulevard.

The acquisition will increase Hyprop’s exposure to Eastern Europe to 37% by gross asset value (GAV).

Hyprop also owns four other retail centres in Eastern Europe, all located in capital cities: The Mall in Sofia, Bulgaria; Skopje City Mall in Skopje, North Macedonia; and City Center one East and City Center one West in Zagreb, Croatia.

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