Dipula Income Fund has announced further details with regards to the acquisition of a property portfolio which was originally announced in November 2017. The preemptive rights (regarding certain properties in the acquisition) have now been waived or exercised. The portfolio’s acquired value is R1.25 billion with a forward yield of 11.8% and it up Dipula’s overall portfolio to more than R8 billion.
“This yield-enhancing acquisition is in line with our strategy of acquiring quality enhancing properties which offer opportunities to extract additional value through redevelopments and refurbishments” comments Dipula CEO, Izak Petersen.
This diversified portfolio has GLA of 340 221m² and spans retail, office and industrial with minimal vacancies of 0.8% and a weighted average lease expiry of 4.5 years.
The purchase consideration will be paid in cash comprising a balance of debt and equity funding.. “This acquisition is a further step in our consistent growth path which has seen our portfolio grow over 300% since listing,” says Petersen.
Dipula’s current portfolio comprises 174 properties valued at approximately R7 billion with a total gross lettable area of 757 363m² including retail, office and industrial properties. 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% stake in a company owning a portfolio consisting predominantly of industrial properties across KwaZulu-Natal, Eastern Cape, Mpumalanga, Gauteng and North West.
The acquisition remains subject to certain conditions precedent. The transaction date is anticipated to be 1 May 2018.