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Dipula buys R316m shopping centre development in East London

15th January 2014

By: Natasha Odendaal

Creamer Media Senior Deputy Editor

  

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JSE-listed Dipula Income Fund plans to acquire the Gillwell Taxi Retail Park development, in East London, from Isibonelo Property Services and Eris Property Group for R316-million.

The deal would become effective after the construction of the three-level, 21 521 m2 shopping centre development, located in the central business district, was completed in March 2015, with occupation scheduled for April that year.

“The property meets Dipula’s strategy of acquiring larger, quality retail assets in targeted areas and improves the overall quality of our portfolio,” said CEO Izak Petersen on Wednesday.

Isibonelo and Eris, which gained planning permission for the project in December, would manage the centre for the first two years of operation.

The transaction also included an option for Isibonelo to acquire a stake – valued between R2-million and R10-million – in the retail centre.

The deal was subject to various conditions, including 80% of the development’s retail space being pre-let and rental guarantees on any unlet space.

Ten-year leases with two five-year renewal options were being finalised with the centre’s anchor retailers Game and Shoprite.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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