Dipula Income Fund (DIF) on Friday announced the results of its private placement and confirmed that the company is scheduled to list on the JSE on Wednesday.

The private placement of Dipula A-linked units was over-subscribed and the placement of Dipula B-linked units was fully subscribed with Redefine Properties participating in the B- linked unit placement. A total of R1,387,630,270 was raised through the private placement.

"The success of the private placement reflects strong market support for the listing of Dipula. We are pleased with such a positive result, especially considering the volatility of market conditions experienced over the past few weeks," affirms Izak Petersen, CEO of Dipula Income Fund.

Dipula is a high-yield income fund which offers investors an A and B linked unit structure. It owns a diversified property portfolio, located throughout South Africa, with a retail bias to low income households, which are expected to outperform higher income households in terms of growth in the short- to medium-term.

Dipula was established through the merger of Dipula Property Fund and Mergence Africa Property Fund. Both parties have a proven record of entrepreneurial flair, were born out of owner-managed companies and enjoy good established relationships in the property industry and the public sector.

The Dipula portfolio consists of over 170 properties representing good sectoral and geographical diversification. As part of the listing Dipula will acquire some R700 million in investment properties from two vendors.

Petersen notes that further opportunities exist for yield-enhancing acquisitions.

Dipula's asset management will be undertaken by a predominantly black owned and managed asset manager. Leveraging its BEE status as a black-managed fund, Petersen explains that Dipula intends to acquire government and parastatal tenanted properties.

Dipula's financial year end is 31 August and it will trade on the JSE under short names 'DIA' for the A-linked units and 'DIB' for the B-linked units.

Source: I-Net Bridge

Publisher: I-Net Bridge
Source: I-Net Bridge