Hyprop has deepened its Eastern European footprint with the acquisition of Bulgarian shopping centre Galleria Burgas for about €122.2m (R2.3bn), as the landlord doubles down on higher-growth markets such as Eastern Europe and the Western Cape.Hyprop said on Friday it is set to acquire the shopping mall on Bulgaria’s Black Sea coast from MAS Property Holding, a subsidiary of the listed Central and Eastern Europe-based group MAS.Hyprop already owns four retail centres in Eastern Europe, all located in capital cities, including 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 planned acquisition forms part of Hyprop’s strategy to expand its exposure to Eastern Europe, where it sees stronger long-term growth opportunities and consumer demand.“Bulgaria’s improving macro environment and strong consumer spending, supported by rising real incomes and falling unemployment, with the adoption of the euro in January 2026, is expected to boost tourism and investment appeal,” the group said. The shopping centre is located in the coastal town of Burgas, Bulgaria’s fourth-largest city, and serves a catchment area of about 400,000 people. The city experiences a sharp increase in visitors during the summer tourism season, supporting retail activity.“This transaction reflects our continued confidence in Eastern Europe’s retail property market. Expanding in this dynamic region, particularly Bulgaria, builds on our deep local expertise and strengthens our presence in the region,” said CEO Morne Wilken.Galleria Burgas was built in 2012 and has more than 36,000m² of lettable retail space and recently underwent an interior refurbishment. The mall’s tenants include international brands such as Zara, H&M, Bershka, Massimo Dutti, Reserved and New Yorker, alongside Cinema City and Intersport.The group said it sees opportunities to improve the shopping centre further by optimising retail space, expanding selected stores and introducing new brands over time.The acquisition will partly be funded through capital raised earlier this year, including proceeds from accelerated bookbuilds and the sale of a 50% stake in Woodlands Boulevard, it said.Last month, the group raised R580m in an oversubscribed bond auction, signalling strong market confidence.The group said it expects the transaction to support earnings growth while keeping debt levels in its target range. The group’s loan-to-value ratio is expected to rise to 33.5% after the transaction, below its internal ceiling of 40%.The transaction is subject to the Bulgarian Commission for Protection of Competition approval, it said.