Dipula Income Fund acquires three shopping centres for R330 million

Izak Petersen, CEO of Dipula Income Fund

Dipula Income Fund today announced it intends to invest nearly R330 million to purchase three shopping centres.

Izak Petersen, CEO of Dipula Income Fund, says: “The acquisitions will further our objective to increase Dipula’s retail portfolio exposure to low-income households. These strategic acquisitions improve the quality and average size of properties in the portfolio. It will also improve the geographic spread of our portfolio.”

The investment comprises R179,5 million for the 25,700sqm The Plaza Shopping Centre in Phuthaditjhaba, Free State; R46,2 million for the 6,000sqm Randfontein Station Shopping Centre, in Gauteng; and R104,2 million for the 14,700sqm Bushbuckridge Shopping Centre in Mpumalanga.

The acquisitions continue Dipula’s focus on portfolio growth. This is its second major transaction since listing in August 2011. Dipula also recently bought Bochum, Blouberg Plaza and Nquthu Plaza for R250 million.

The new assets will grow Dipula’s portfolio to 181 sectoraly and geographically diverse properties, valued at approximately R2.7 billion. The fund’s total size will now comprise of approximately 512 000m2 of GLA, following the two acquisitions with retail property being approximately 57%of that.

The three shopping centres will be acquired using a minimum of 30% debt funding, with the balance being equity funded. The transaction is still subject to various conditions, including Competition Commission approval. 

Dipula is finalising the acquisition’s financial effects and, until this is announced, it has advised Dipula linked unitholders to exercise caution when dealing in its linked units.

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 is externally managed by Dipula Asset Management Trust, a company with exceptional BEE credentials.