Dipula boosts its property assets to more than R4 billionMarch 22, 2013
Dipula Income Fund announced today that it will acquire six properties in a single transaction for a combined R559 million, in yet another successful acquisition for the JSE-listed property company.
Dipula, through its subsidiary Mergence Africa Property Fund Investment Trust, signed agreements to acquire Shoprite Pretoria North from Capital Property Fund, Ziyabuya Shopping Centre and Gezina Galleries from Pangbourne Properties Limited, Blackheath Pavilion from Monyetla Property Holdings (Proprietary) Limited, and Woodmead Square and Woodmead Super Value Mall from iFour Properties SA (Proprietary) Limited.
Izak Petersen, CEO of Dipula Income Fund says: “These acquisitions are yield enhancing and grow Dipula’s retail portfolio. They also further Dipula’s strategy of improving the quality and average size of the properties in our portfolio on a yield-enhancing basis.”
Dipula Income Fund is a listed property loan stock company formed through the merger of Mergence Africa Property Fund and Dipula Property Fund, two majority black-owned property funds. Dipula has amongst the highest black shareholding in the SA listed property sector, and is managed externally by Dipula Asset Management Trust a 100% BEE company.
Three of the acquisition properties are in Johannesburg, including the 6,269sqm Blackheath Pavilion in Randburg and, in Sandton, the 2,910sqm Woodmead Square and the 7,993sqm Woodmead Super Value Mall.
Two of the acquisition properties are in Pretoria, including the largest of the properties Gezina Galleries, a shopping centre with over 40 tenants. The centre is 16,632sqm and anchored by Checkers. Shoprite Pretoria North is 6,442sqm and located on the corner of Ben Viljoen and Rachel de Beer streets.
The final property is in Port Elizabeth. Ziyabuya Shopping Centre is in Kwadesi and includes 14,584sqm of retail space housing 39 retailers with anchor tenants Shoprite and Cashbuild.
Dipula is finalising the acquisition’s financial effects and, until announced, it advises Dipula linked unitholders to exercise caution when dealing in its linked units. The transaction is subject to various conditions, including approval by the Competition Authorities.
Following this acquisition, Dipula’s portfolio will grow more sectorally and geographically with a retail bias and will be valued in excess of R4 billion.