Empowered JSE listed property fund, Dipula Income Fund, plans to beef up its portfolio with a purchase of three shopping centre valued at about R330m.
“The acquisitions will further our objective to increase Dipula’s retail portfolio exposure to low-income households,” said Dipula Income Fund CEO Izak Petersen CEO.
He said the acquisitions would come to improve the quality and average size of properties in the portfolio. “It will also improve the geographic spread of our portfolio.”
The investment comprises The Plaza Shopping Centre in Phuthaditjhaba which was priced at R179,5 million, Randfontein Station Shopping Centre (R46,2 million) and Bushbuckridge Shopping Centre in Mpumalanga (R104,2 million).
Petersen said the acquisitions continue Dipula’s focus on portfolio growth. This is its second major transaction since listing in August 2011. Dipula also recently bought Bochum, Blouberg Plaza and Nquthu Plaza for R250 million.
The new assets will grow Dipula’s portfolio to 181 properties, valued at approximately R2.7 billion. The fund’s total size will now comprise of approximately 512 000m2 of GLA, following the two acquisitions with retail property being approximately 57% of that.
The three shopping centres will be acquired using a minimum of 30% debt funding, with the balance being equity funded. The transaction is still subject to various conditions.