JSE-listed diversified real estate investment trust Dipula Income Fund on Friday provided further details of its R1.25-billion property portfolio acquisition that was initially announced in November.
The company reported that pre-emptive rights regarding certain properties in the acquisition had either been waived or exercised. As a result, the purchase price had been adjusted from the R1.27-billion originally announced.
The transaction is expected to close on May 1.
The acquisition, which will push the value of Dipula’s overall portfolio to more than R8-billion, includes assets with a gross leasable area (GLA) of 340 221 m2, spanning retail, office and industrial space. The property has minimum vacancies of about 0.8% and a weighted average lease expiry of four-and-a-half years.
More specifically, the properties include two in Gauteng (Chilli Lane and Chilli on Top, in Sunninghill); six office properties across Gauteng and the Western Cape (including 55 Hyde Park, Carnation Place, Valley View and Avanti); two redevelopment properties (in Johannesburg and Hatfield) and 22 industrial properties.
CEO Izak Petersen said the yield-enhancing acquisition was expected to increase Dipula’s net operating profit to R174-million for the 12 months ended August 2019, up from the anticipated R56-million for the four months ended August 2018. “Total profit and comprehensive income attributable to shareholders is estimated to be R102-milion in August 2019, compared with R32-million estimated for August 2018.”
The purchase consideration will be paid in cash comprising a balance of debt and equity funding.
Dipula’s current portfolio comprises 174 properties valued at about R7-billion, with a GLA of 757 363 m2 including retail, office and industrial properties.