BRIEF-Dipula disposes some of its non-core properties

Dipula Income Fund on Tuesday said it had concluded agreements to sell 13 properties for a total purchase consideration of R51.8 million, which will be used to reduce debt.

The sale will reduce the number of properties in the Dipula portfolio from 180 to 167, aiming to drop vacancies across its portfolio.

The sale is not material enough to impact on the guidance given in the financial results for the year ended 28 February 2014.

However, given the reduction to Dipula’s interest expense from the reduction in debt and the saving on unrecoverable rates and operating costs, it is anticipated that the sale will be slightly yield enhancing (although this has not been reviewed or reported on by Dipula’s auditors).