Competition Commission approves Dipula Income Fund’s purchase of three shopping centres

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File Photo: Izak Petersen, CEO of Dipula Income Fund announces Dipula Income Fund’s listing on the JSE (17 August 2011). File Photo: Izak Petersen, CEO of Dipula Income Fund announces Dipula Income Fund’s listing on the JSE (17 August 2011).

The Competition Commission has given the green light to Dipula Income Fund’s acquisition of Randfontein Centre, Bushbuckridge Centre and The Plaza shopping centres for a combined investment of nearly R330 million.

The transaction 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.

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.

The company announced a further transaction earlier this week. Dipula is set acquire three prime Pretoria office buildings for a combined R431 million, continuing its focus on portfolio growth.

Dipula signed agreements to acquire the 5,048sqm Absa Call Centre building in Arcadia for R82,6 million, the 21,478sqm SAPS VIP building in Sunnyside for R229,86 million and the 7,699sqm SAPS IJS building in Erusmuskloof for R118,54 million, from the developer of the three properties. The transaction is subject to various conditions, including Competition Authorities approval.

In the year since listing on the JSE in August 2011 Dipula has grown its assets from 176 to 185 sectoraly and geographically diverse properties. The value of its acquisitions, including those made at listing, exceeds R1.7 billion, taking Dipula’s asset value to R3.1 billion.

Dipula linked units are delivering sterling performance on the JSE with the A units up by more than 24% from the listing price of R8.58 per A linked unit to a trading price of R10.65 per A linked unit on 30 August 2012. Dipula B linked units up by roughly 23% from listing at R5.53 per B linked unit to trading R6.80 per B linked unit to the same date, excluding income returns.

Izak Petersen, CEO of Dipula Income Fund, says: “These strategic acquisitions improve the quality, diversity and average size of properties in our portfolio. We intend to continue growing our portfolio in line with our investment objectives.”

READ MORE ON:

Retail Property Market  |  Listed Property / REITs  |  Dipula Income Fund  |  Izak Petersen

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