Hyprop Investment, a South Africa prominent Real Estate Investment Trust (REIT), has acquired Galleria Burgas Mall on Bulgaria’s east coast for about €122.2 million ($140 million), expanding its retail property portfolio in Eastern Europe.

The acquisition was completed through Balkan Retail N.V., a subsidiary of Hyprop, which bought Galleria Burgas EAD from MAS Property Holding S.R.L., a subsidiary of MAS PLC.

The agreed gross purchase price is €122.2 million ($140 million), before adjustments, equivalent to about R2.3 billion.

Deal expands Eastern Europe exposure

Hyprop said the acquisition will add a high-quality retail asset to its Eastern European portfolio and support its strategy of investing in dominant shopping centres in selected markets.

The company will assume Galleria Burgas EAD’s senior debt, which is expected to stand at €73.3 million ($84.3 million) at closing. The equity portion of the deal will be funded with proceeds from the sale of a 50% stake in Woodlands Boulevard and earlier capital raises.

Hyprop’s loan-to-value ratio is expected to increase from 31% to 33.5% following the transaction, remaining within the company’s internal targets.

The acquisition follows a series of capital-raising moves that have given Hyprop additional capacity to pursue assets outside its home market. In 2025, the company raised R1.2 billion ($72.6 million) through accelerated bookbuilds and secured a further R800 million ($48.4 million) from the sale of a 50% interest in Woodlands Boulevard.

Hyprop said the deal will increase Eastern Europe’s contribution to its portfolio to 37% by gross asset value.

Galleria Burgas adds Bulgarian retail asset

Galleria Burgas is in Burgas, Bulgaria’s fourth-largest city, and serves a metropolitan population of about 400,000 people. The shopping centre adds a second Bulgarian asset to Hyprop’s portfolio and gives the company a larger presence outside the country’s capital, Sofia.

Hyprop already owns four retail centres in Eastern Europe, including The Mall in Sofia, Skopje City Mall in North Macedonia and City Centre One East and City Centre One West in Zagreb, Croatia.

“This reaffirms the Group’s focus on dominant retail centres in high-growth regions with strong asset management potential,” Hyprop said.

Chief Executive Officer Morne Wilken said the acquisition reflects the company’s confidence in Eastern Europe’s retail property market.

“Expanding in this dynamic region, specifically Bulgaria, leverages our deep market knowledge and strengthens our presence,” Wilken said.

Hyprop builds larger retail portfolio

Listed on the Johannesburg Stock Exchange, Hyprop manages a retail-focused property portfolio worth about R42 billion ($2.5 billion), with assets across South Africa, sub-Saharan Africa and major cities in Eastern Europe.

Its South African portfolio includes Rosebank Mall, Canal Walk, Somerset Mall and Clearwater Mall.

The Galleria Burgas acquisition gives Hyprop another established shopping centre in a market where it has been expanding its retail property interests, while keeping its focus on large, established centres with potential for further asset management and earnings growth.