Dipula looks to buy two retail centres within a diverse property portfolio for R1.27bn
On Friday, JSE-listed, diversified real estate investment trust (REIT) Dipula Income Fund (Dipula) announced its intention to acquire a diverse property portfolio for a purchase consideration of R1.27bn, taking Dipula’s total portfolio value to more than R8.5bn. The forward yield of the acquisition is 11.7%. The portfolio being acquired comprises two retail properties in Gauteng, Chilli Lane and Chilli on Top, totaling 18,433m²; five office properties across Gauteng and the Western Cape totaling 23,138m²; and three redevelopment properties. As part of the same transaction, Dipula will also acquire, a 50.1% stake in a portfolio consisting predominantly of industrial properties for a total price of R209m. Dipula has been very cautious with respect to new acquisitions for the past year, due to the weak economy, and political and market uncertainty. CEO Izak Petersen said: "This acquisition is in line with our strategy of acquiring quality-enhancing properties that offer opportunities t...
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