Dipula to sell 13 properties for R51.8m
Real estate investment trust Dipula Income Fund has concluded agreements to sell 13 properties for R51.8-million, which would be used to reduce debt, the company announced on Tuesday.
Dipula said the sale, which was in line with its strategy of exiting noncore assets and improving the overall quality of its portfolio, would reduce the number of properties in its portfolio from 180 to 167 and lower its vacancies.
The sale would also increase the average value of the properties in the Dipula portfolio by about 9% to R24.3-million.
Dipula said that, while the sale was not material enough to impact on the guidance given in the financial results for the year ended February 28, given the reduction to Dipula’s interest expense from the reduction in debt and the saving on unrecoverable rates and operating costs, it was expected that the sale would be slightly yield-enhancing.
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