Dipula eyes R1.25bn acquisition

DIPULA, the listed diversified real estate investment trust, is making progress with its planned acquisition of a R1.25 billion portfolio that, once finalised, will boost the total value of its portfolio to more than R8bn. The company said on Friday the pre-emptive rights regarding certain properties in the acquisition had now either been waived or exercised. However, Dipula said the acquisition remained subject to certain conditions precedent, and it was anticipated the transaction would be completed on May 1 this year. The portfolio being acquired comprises two retail properties in Gauteng: Chilli Lane and Chilli on Top; six office properties across Gauteng and the Western Cape; and two redevelopment properties. The transaction includes the acquisition of a 50.01 percent stake in a company owning a portfolio comprising predominantly industrial properties across KwaZulu-Natal, the Eastern Cape, Mpumalanga, Gauteng and North West. Izak Petersen, the chief executive of Dipula, said this yield-enhancing acquisition was in line with Dipula’s strategy of acquiring quality enhancing properties that offered opportunities to extract additional value through redevelopments and refurbishments. Petersen said the diversified portfolio being acquired had a gross lettable area of 340 221m² with minimal vacancies of 0.8 percent and a weighted average lease expiry of 4.5 years. He said the purchase consideration would be paid in cash. – Roy Cokayne