Dipula engages yield-enhancing assets

Posted On Monday, 10 September 2012 09:45 Published by Commercial Property News
Rate this item
(0 votes)

JSE-listed property company Dipula Income Fund recently announced that it will acquire four properties for a combined R326 million, in its fourth major property acquisition since listing on the JSE in August 2011

 

Dipula signed agreements to acquire a portfolio of three government-tenanted office buildings for a total of R173 million and Tower Mall, a 15,348sqm retail mall under development in Jouberton in the North West Province, for R153 million.

Izak Petersen, CEO of Dipula Income Fund says: “Both the office and retail acquisitions further Dipula’s strategy of improving the quality and average size of its portfolio on a yield-enhancing basis. The transactions expand our geographic and sectoral diversification. The office properties also confirm the benefits of Dipula’s black-owned external management company.”

Dipula Income Fund is a listed property loan stock company formed through the merger of Mergence Africa Property Fund and Dipula Property Fund, two majority black-owned property funds. Dipula has amongst the highest black shareholding in the SA listed property sector, of around 26%, and is managed externally by Dipula Asset Management Trust a 100% BEE company.

The three office properties all have relatively long government leases. They comprise the 3270sqm Byron Place in Pretoria acquired for R38 million, the 12,782sqm Sterkolite building in Rosslyn, Pretoria for R78 million, and 6909sqm Elco building in East London for R57 million. Dipula is acquiring them at a favourable yield.

Tower Mall will be a rural shopping centre anchored by Shoprite, with a high proportion of national tenants. Petersen explains the acquisition agreement ensures Tower Mall will make positive, sustainable contribution to Dipula’s rental income from the onset. It is expected to open in the final quarter of 2013. Any un-let space will be subject to a five year head lease from the seller secured by the retention of part of the purchase price.

Dipula is finalising the acquisition’s financial effects and, until announced, it advises Dipula linked unitholders to exercise caution when dealing in its linked units. Both office and retail transactions are subject to various conditions, including Competition Authorities approval.

Following this transaction, Dipula’s assets will grow to 189 sectoraly and geographically diverse properties valued at R3.4 billion.

Last modified on Tuesday, 28 May 2013 20:44

Most Popular

Equites Property Fund’ prime logistics portfolio delivers exceptional returns

May 04, 2022
Andrea Taverna-Turisan
Equites Property Fund Limited today announced growth in its distribution per share of…

When is eviction legal? All you need to know about dealing with problem tenants

May 04, 2022
Evictions
Buying an investment property is great, especially when you’ve chosen a good location.…

Steilloop Shopping Centre makeover exceeds customer needs

Apr 22, 2022
Rural Limpopo's Steilloop Shopping Centre was bought by developer, GMI Property Group…

Deadline looms for energy performance compliance for commercial buildings

Apr 25, 2022
Energy certiticate
By 7 December 2022, commercial properties in specified sectors must have obtained their…

First quarter Rode’s Report raises doubts over the Sectional Titles Schemes Management Act

Apr 25, 2022
Default Image
The latest issue of the Rode’s Report has brought into question the practicality of the…

Please publish modules in offcanvas position.