Dipula to acquire Protea Gardens Mall for $27.1 million

At a Glance

• Dipula Income Fund acquires Protea Gardens Mall, enhancing township retail presence in Soweto.
• Acquisition supports Dipula’s growth strategy into convenience retail and industrial assets across South Africa.
• Forecast distributable profit hits $2.26 million in 2027, assuming timely transfer and approvals.

Dipula Income Fund has agreed to acquire Protea Gardens Mall, a 24,141m² community shopping centre in Soweto, for R478.1 million ($27.1 million), underscoring its push into township and convenience retail.

Anchored by national retailers including Shoprite, Boxer and Cashbuild, the mall boasts more than 70 percent national tenant occupancy, generating a steady income stream with long-term growth potential.

The acquisition supports Dipula’s strategy of expanding into well-located retail assets that serve densely populated communities.

Conditions and financing

The transaction remains subject to approvals, including Competition Authority clearance, financing arrangements, and Dipula’s board sign-off. 

The deal is structured as an all-cash purchase on transfer, though Dipula may finance it through a mix of debt and equity, including share issues or vendor placements.

The company forecast distributable profit of R26.6 million ($1.5 million) for the nine months ending August 2026, and R39.9 million ($2.26 million) for the year to August 2027, assuming the transfer closes by November 2025, as gathered by Shore Africa.

Boosting portfolio with strategic assets

The Soweto acquisition comes alongside other deals: Airborne Industrial Park near OR Tambo International Airport, Abland DC logistics hub, Woolworths Gezina, and land adjacent to Tower Mall in Jouberton. 

Together, these additional acquisitions amount to R215.6 million ($12.19 million), expanding Dipula’s exposure to industrial and retail growth nodes.

Management said the portfolio additions reflect Dipula’s capital allocation focus—growing convenience and township retail while diversifying into logistics and industrial assets.