In this Issue
- Hedging our bets
- Developing our portfolio
- Under our belts
- Developing our country
- Investor Diary 2016
Where my head is at

Izak Petersen
Chief Executive Officer

Walking through the streets of Alexandra a few days ago was yet another reminder of just how unequal South Africa remains, and how most of us choose to turn a blind eye to this persisting reality.

The larger truth is that the entire globe is riddled with problems at present.  Disaster is following disaster with unprecedented regularity. There is no safe harbour as terror attacks are perpetrated in “safe” countries and major political and economic decisions driven by fear and narrow national interest are becoming the order of the day.
Brexit is the latest enigma and it has led to major uncertainty for Britain, its trading partners and Europe at large. The market volatility that followed Brexit clearly shows the complexity of making prudent investment calls in the prevailing macro economy. As with all other asset classes, Real Estate will continue to be affected, especially where UK and European-focussed investors are concerned.   

Returning to where I started, at home, we are faced with a looming downgrade.  Now more than ever this calls for South Africans to stand together in building a sustainable economy. In order to successfully narrow the gap between the ‘haves’ and ‘have-nots’ we need to learn from other countries’ experience in building durable and resilient economies from such a gap, by:
  • Addressing our vast inequalities by acknowledging that they exist (both government and the private sector)
  • Creating an educated population
  • Building modern infrastructure
  • Addressing our healthcare challenges
  • Levying fair taxes relative to government delivery
  • Running an efficient government
  • Attracting talent and skills, celebrating intellectual excellence and having zero tolerance for mediocrity
  • Creating the right image of South Africa and effectively selling that to the world
At Dipula we are committed to investing responsibly in our country and taking modest and realistic steps towards making a difference where we can, while creating and preserving value for our investors.

In this edition of Pulse, our second for 2016, we share some of our community-based events at our shopping centres.  We hope to build on this as we march forward in building our special country.

Hedging our bets
Dipula effectively seized the recent rates downcycle opportunity on the swap market to conclude R360 million worth of swaps, for four years at a nominal rate of 7.85%. As a result, the company’s total debt hedge increased to 60.5% from 48% at the end of the previous interim period (29 February 2016).

We continue to actively monitor debt capital markets on an ongoing basis to capitalise on hedging opportunities, especially important in the current macro economy.

We have further refinanced our R610 million of debt facilities, which are set to mature during the 2016 calendar year, at an average rate of 3 month JIBAR + 1.85%. The majority of debt was refinanced for three years.
Developing our portfolio
Construction on the R55 million office refurb and extension of Nemisa, Parktown began mid-July 2016. The total GLA is being extended from 3 600m² to 5 200m² in line with our drive to extend the life cycle of the property and enhance the quality of assets in our portfolio. The refurb has aided us in securing a 5-year lease renewal with the existing tenant (3 600m²) at a higher rental and presents the opportunity to attract additional new tenants. The extra GLA is currently being marketed. We expect to complete the project by May 2017.

The Pick n Pay in Vosloorus is set to extend by 300m² to 3900m² with the addition of a fast food drive-through and extra ATMs. The R4 million project will kick-off in August this year.
Under our belts

Our refurbed retail properties were launched as Pick n Pay stores in Barbeton and Scott Street, Newcastle in March and June this year, respectively. Both properties had previously been vacant - the specific refurb enabled Dipula to secure a strong national anchor tenant for the respective centres on a long-term lease (up to ten years).
Developing our country
Eyethu Orange Farm Mall, Johannesburg Gauteng

The mall recently extended support to the Lehaeng Community Centre, a centre assisting struggling families with basic necessities such as weekly groceries and extraordinary expenses such as school uniforms.
Investor Diary 2016
Financial year-end 31 August
Analyst presentation JHB
Hyatt, Rosebank: 08h30
Analyst Presentation CPT
RadissonBlu, Cape Town CBD: 16h00
10 November
Copyright Dipula 2016
All Rights Reserved.
Quick Contact
Tel: +27 11 325 2112
Fax:+27 11 325 7597
Address: Block B
Dunkeld Park, 6 North Road
Dunkeld West, Johannesburg
In this Issue
- Hedging our bets
- Developing our portfolio
- Under our belts
- Developing our country
- Investor Diary 2016