Dipula Income Fund has secured more than R85 million in commercial property leases in the first quarter of this year.

The fund, which is set to list on the JSE this year, said the leases resulted in a positive impact on its rental income streams and occupancy levels.

Dipula was established through the merger of Dipula Property Fund and Mergence Africa Property Fund into a sizeable, diverse commercial property fund with black economic empowerment (BEE) credentials.

"We are seeing improved confidence and strong demand for both retail and industrial space, with about 90% of the leases signed being for three years or longer," said Izak Petersen, CE of Dipula.

"This is in line with the commercial property market dynamics that 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 explained that the high levels of renewals were "extremely" satisfying and in line with Dipula'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," he said.