Johannesburg Stock Exchange (JSE) listed property company Dipula Income Fund will buy three prime Pretoria office properties for R431 million.
Dipula signed agreements to acquire the 5 048 square metre Absa Call Centre building in Arcadia for R82.6 million, the 21 478 square metre SAPS VIP building in Sunnyside for R229.86 million and the 7 699 square metre SAPS IJS building in Erusmuskloof for R118.54 million, from the developer of the three properties.
Izak Petersen, chief executive offcier of Dipula Income Fund, says the acquisitions enhance Dipula’s office portfolio.
“They are modern, high-quality, single-tenanted office buildings with A-grade corporate and government tenants.”
Petersen says the acquisitions continue Dipula’s strategy to improve the quality and average size of its portfolio, on a yield enhancing basis.
By acquiring these assets, Dipula is also gaining access to the Pretoria office market, improving the geographic diversification of their portfolio, he says.
This is Dipula’s third major property acquisition transaction since listing on the JSE in August 2011.
In this time it has grown its assets from 176 to 185 sectoraly and geographically diverse properties, and its asset value from R2.1 billion to R3.1 billion.
Dipula is finalising the acquisition’s financial effects and, until announced, it advises Dipula linked unitholders to exercise caution when dealing in its linked units.
The transaction is subject to various conditions, including Competition Authorities approval.
Meanwhile, the Competition Commission has given the green light to Dipula Income Fund’s acquisition of three shopping centres for a combined investment of nearly R330 million.
The transaction comprises R179.5 million for the 25 700 square metre The Plaza Shopping Centre in Phuthaditjhaba, Free State, R46.2 million for the 6 000 square metre Randfontein Station Shopping Centre in Gauteng and R104.2 million for the 14.700 square metre Bushbuckridge Shopping Centre in Mpumalanga.
Dipula linked units are delivering sterling performance on the JSE with the A units up by more than 24 percent from the listing price of R8.58 per A linked unit to a trading price of R10.65 per A linked unit on 30 August 2012.
Dipula B linked units up by roughly 23 percent from listing at R5.53 per B linked unit to trading R6.80 per B linked unit to the same date, excluding income returns.
Petersen adds that these strategic acquisitions improve the quality, diversity and average size of properties in Dipula portfolio and they intend to continue growing the portfolio in line with the company’s investment objectives.