Jun 15, 2012
Dipula outlines R330m retail investment planBack
Blouberg Plaza|Bochum|Dipula Income Fund|Nquthu Plaza|Randfontein Station|The Plaza|Izak Petersen
© Reuse this
CEO Izak Petersen says: “The acquisitions will further our aim to increase Dipula’s retail portfolio exposure to low-income households. These strategic acquisitions improve the quality and average size of properties in the portfolio. It will also improve the geographic spread of our portfolio.”
The investment comprises R179.5-million for the 25 700 m2 The Plaza shopping centre, in Phuthaditjhaba, in the Free State; R46.2-million for the 6 000 m2 Randfontein Station shopping centre, in Gauteng; and R104.2-million for the 14 700 m2 Bushbuckridge shopping centre, in Mpumalanga.
The acquisitions continue Dipula’s focus on portfolio growth. This is its second significant 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 sectorally and geographically diverse properties, valued at about R2.7-billion. The fund’s total size will now comprise 512 000 m2 of gross leasable area following the two acquisitions, with retail property being almost 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, including Competition Commission approval.
Dipula is finalising the acquisition’s financial effects and, until this is announced, it has advised Dipula-linked unitholders to exercise caution when dealing in its linked units.
Edited by: Martin Zhuwakinyu© Reuse this Comment Guidelines (150 word limit)
Other Construction News
Recent Research Reports
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
Real Economy Insight: Steel 2014 (PDF Report)
This four-page brief covers key developments in the steel industry over the past 12 months. It provides an overview of the global and South African steel and stainless steel markets, South Africa’s major steel producers and events that have shaped these markets.
This Week's Magazine
South African construction company Group Five says work on the rehabilitation of the 800 km stretch of the Plumtree–Mutare highway, in Zimbabwe, should be completed by the end of this year. Giving evidence before the Parliamentary Porfolio Committee on Transport...
The Space Operations division of the South African National Space Agency (Sansa) revealed on July 17 that it had supported the successful launch of the US National Aeronautics and Space Administration’s Orbiting Carbon Observatory-2 (OCO-2) satellite on July 2. The...
Phase 1A of Johannesburg’s Rea Vaya bus rapid transit (BRT) system should carry around 42 000 people a day, while it was been expected that Phase 1B, rolled out last year, would add another 60 000 daily passengers. However, the entire system is currently carrying...
A stormwater project in Bedforview, east of Johannesburg, has stalled for eight months after project managers in the Ekurhuleni municipality resigned and municipal managers were placed on special leave without designating replacements. Construction to reinforce the...
The design of the Beit Bridge border post is the biggest impediment to efficient freight movement between Zimbabwe and South Africa, says Cross-border Road Transport Agency CEO Sipho Khumalo. Beit Bridge is the busiest border post in Africa. A research study on the...