JSE-listed real estate investment trust Dipula Income Fund plans to acquire a mixed portfolio from an undisclosed seller for R1.27-billion.
The portfolio comprises two retail properties in Gauteng, namely Chilli Lane and Chilli on Top, boasting an aggregate 18 433 m² of space; five office properties across Gauteng and the Western Cape totalling 23 138 m² of space; and three redevelopment properties.
Dipula will also acquire a 50.1% stake in a portfolio comprising mostly industrial properties for R209-million.
The acquisition, along with R277-million in concluded transactions earlier this year, will take Dipula’s total portfolio value to more than R8.5-billion.
“The transaction complements Dipula’s existing portfolio of 174 properties, valued at about R7-billion, with a total gross lettable area (GLA) of 757 363 m² including retail, office and industrial properties,” Dipula CEO Izak Petersen said in a statement on Friday.
The weighted average lease expiry profile of the portfolio is defensive at over four years and 97% of the GLA is let to multinational, national and strong regional tenants.
Dipula highlighted the acquisition’s minimal vacancies of 0.8%.
The forward yield of the acquisition is 11.7%.
The acquisition remains subject to certain conditions precedent.