R85 million leases secured by Dipula

Posted On Tuesday, 19 April 2011 02:00 Published by Commercial Property News
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Demand for commercial property is growing as the market recovers

Over R85 million in commercial property leases were secured by Dipula Income Fund during 2011:Q1, resulting in a positive impact on the company’s rental income streams and occupancy levels.

Anticipated to list on the JSE before mid-year, Dipula Income Fund was established through the merger of Dipula Property Fund and Mergence Africa Property Fund into a sizeable, diverse commercial property fund with exceptional BEE credentials.

Dipula owns a R1,4 billion property portfolio spanning some 320,000sqm gross lettable area. The portfolio serves in excess of 500 tenants throughout South Africa, with a sectoral spread comprising 50% retail properties and 25% each of offices and industrial properties.

Dipula’s 2011:Q1 leasing resulted in the take up of some 35,000sqm of space within its portfolio. Around 28,000sqm of this represents renewals valued at R73,9 million and 6,700sqm covers new leases valued at R11,5 million.

“We are seeing improved confidence and strong demand for both retail and industrial space, with around 90% of the leases signed being for three years or longer,” says Izak Petersen of Dipula Income Fund. “This is in line with the commercial property market dynamics which are to be expected as our economy recovers. Demand for retail space is first to pick up, followed by industrial and finally office space.”

Petersen explains that the high levels of renewals are extremely satisfying and in line with Dipula Income Fund’s tenant retention strategy. “The strong lease renewal success can be attributed to the excellent locations and quality of the tenant experience in our properties, as well as good tenant relationships.”

Taking a proactive stance to leasing in the portfolio, new and renewed leases were secured in over 40 different deals which consist of agreements with tenants including Edcon, Pick n Pay, Absa, Standard Bank, Unisa, Shoprite, JD Group, Ellerines and Old Mutual, further enhancing Dipula Income Fund’s substantial blue-chip tenant base.

Last modified on Tuesday, 28 May 2013 20:50

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