Jun 15, 2012
Dipula outlines R330m retail investment planBack
Blouberg Plaza|Bochum|Dipula Income Fund|Nquthu Plaza|Randfontein Station|The Plaza|Izak Petersen
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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)
Creamer Media Senior Deputy Editor
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