Dipula is a JSE-listed Real Estate Investment Trust (REIT) with a well-diversified R6.9 billion property portfolio comprising mainly retail assets (59% by GLA). Industrial and commercial assets account for 25% and 16%, respectively of the portfolio in terms of GLA. The portfolio spans all nine provinces of South Africa.
The company’s A and B shares accommodate different risk appetites with A shareholders receiving a preferred 5 % growth in distributions while B shareholder receive the remainder, allowing good potential upside. Both shares rank equally in terms of voting and all other shareholder entitlements.
Management shows good commitment to the Fund through holding a sizable stake in Dipula as a strategic long term play.
Property management is partly outsourced and partly internally managed.
We are a level 2 BEE contributor as at 31 August 2016.
|At 31 August 2017||Total|
|Number of properties||174|
|Portfolio valuation (R’000)||R6 896 611|
|Gross lettable area (m²)||757 363|
|Average value per m² (R)||R9 106|
|Average monthly gross rental per m² by GLA||R85.22|
|Average monthly gross rental per m² by income (R)||R111.90|
|Average escalation (%) by GLA||7.7%|
|Average escalation (%) by income||7.6%|
Dipula has been operating since 2005 and in 2011 Dipula Property Fund merged with Mergence Africa Property Fund. Both enterprises were owner-managed with proven records of entrepreneurial flair. The management team was drawn from Mergence and Dipula.