JSE-listed BBBEE property company Dipula Income Fund is making waves in the commercial property market with a sustained expansion that has reached investment value of R3.1bn.
The group led by veteran black property players Saul Gumede and Izak Petersen announced this week it will acquire three prime Pretoria office buildings for a combined R431 million, continuing to drive its vigorous portfolio growth.
Dipula signed agreements to acquire the 5,048sqm Absa Call Centre building in Arcadia for R82,6 million, the 21,478sqm SAPS VIP building in Sunnyside for R229,86 million and the 7,699sqm SAPS IJS building in Erusmuskloof for R118,54 million, from the developer of the three properties.
Izak Petersen, CEO of Dipula Income Fund says “The acquisitions enhance Dipula’s office portfolio. They are modern, high-quality, single-tenanted office buildings with A-grade corporate and government tenants.”
He adds: “The acquisitions continue Dipula’s strategy to improve the quality and average size of its portfolio, on a yield enhancing basis. By acquiring these assets, Dipula is also gaining access to the Pretoria office market, improving the geographic diversification of our portfolio.”
This is Dipula’s third major property acquisition transaction since listing on the JSE in August 2011. In this time it has grown its assets from 176 to 185 sectoraly and geographically diverse properties, and its asset value from R2.1 billion to R3.1 billion.
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. The transaction is subject to various conditions, including Competition Authorities approval.
Dipula Income Fund was listed on the JSE last year after emerging from a merger of two medium sized black operated property investment companies, Mergence Africa Property Fund and Dipula Property Fund. The company is one of three superior BBBEE listed property entities. The short list includes the Billion group administered property fund Rebosis and Vunani Property Fund.