South Africa’s Dipula Properties seals $125 million retail portfolio deal

Dipula Properties, a South African Real Estate Investment Trust (REIT), has agreed to acquire a portfolio of shopping centres from Moolman Group and its co-investors for R2 billion ($125 million), its largest transaction to date.

The portfolio spans nearly 90,000 square meters of income-producing retail space and is anchored by national tenants including Checkers, Shoprite, Game, Cashbuild and Makro.

Nine assets across four provinces

The acquisition includes two Free State assets: Bloemfontein Makro and a 50% stake in Sasolburg Mall, formerly Sasolburg Junxion. In Limpopo, Dipula will acquire a 50% stake in Lephalale Mall, the portfolio’s largest asset by size and value. Moolman Group and another partner will retain the remaining 50%.

Other Limpopo properties include Checkers Centre Polokwane, City Centre Polokwane and Great North Plaza in Musina. The deal adds nine assets across four provinces and is expected to strengthen Dipula’s national retail presence, diversify its portfolio and support its focused growth strategy. The transaction is accretive from day one.

Equity raise supports acquisition

The transaction follows a private placement that secured subscription commitments of R1.1 billion ($68 million) in new equity. Including the latest deal, Dipula’s acquisitions over the past 12 months total R3 billion ($187 million) across 14 assets.

“Dipula will deploy the equity raised, together with existing debt facilities, to fund the acquisition,” Izak Petersen, CEO of Dipula Properties, said. Once completed, the acquisition will leave Dipula’s loan-to-value ratio between 35% and 40%, within its target range, Petersen said.

“The transactions are transformational for Dipula’s portfolio, increasing retail exposure to close to 80% of income in the short term, while reducing office exposure to around 10%,” he said.

Dipula and Moolman Group

Dipula is a South Africa-focused, JSE-listed REIT with retail, office, industrial and residential property assets. Its portfolio is focused on defensive urban, township and rural community retail centres.

Led by CEO Izak Petersen, the company’s total portfolio is R10.3 billion ($643 million). Its internally managed team has expertise across its chosen markets, with portfolio management central to its investment strategy.

Moolman Group, meanwhile, is a South African property investment, development and management company founded in 1967 as a family business in Polokwane. Headquartered in Pretoria, it manages retail, commercial and industrial portfolios across southern Africa and abroad.