Dipula absorbs six shopping centres for R425m

Pimville Square in Soweto is among the shopping centres which Dipula Income Fund has acquired from Redefine Properties.

Dipula Income Fund has acquired 6 shopping centres from Redefine Properties for a consideration of R425-million, 25% of which will be settled in cash and the balance in Dipula A and B linked units.

The transaction is revenue enhancing and increases retail component which comprises 55% of its portfolio, the company said last Thursday.

The acquired assets includes Soweto shopping centres; Meadowpoint Shopping Centre, Proteapoint Shopping Centre, Dobsonpoint Shopping Centre and Pimville Square. Kudube Hammanskraal Centre and Kudube Kopanong Centre, are both situated in Hammanskraal in the North West Province.

Izak Petersen, CEO of Dipula, comments, “The acquisitions further our strategic investment focus on retail assets in underserviced areas, giving it unique access to the dense Soweto and Hammanskraal market.”

The purchase consideration will be settled by 25% cash and 75% through the issue of Dipula A and B linked units. The transaction is subject to meeting certain conditions, including Competition Commission approval.

Dipula Income Fund is a JSE-listed REIT that is distinguished for the exceptional B-BBEE credentials of the fund and its Asset Manager. Dipula originated from two majority black-owned property funds, Mergence Africa Property Fund and Dipula Property Fund.

Dipula’s diversified property portfolio comprises 179 retail, industrial and office properties. By size, Dipula’s portfolio is 71% concentrated at the centre of South Africa’s economic activity in Gauteng.