Dipula Properties is set to spend more than R2-billion on the acquisition of nine retail properties in an effort to expand its footprint across four provinces.
The retail-focused real estate investment trust (REIT) revealed on Monday that it has entered into agreements to acquire properties and their related rental enterprises from entities within the Moolman Group and their co-investors for an aggregate purchase consideration of more than R2 billion.
“The property portfolio comprises nine properties with a combined gross lettable area of 89 168 sqm, let to a tenant base anchored by strong, well-established tenants including Checkers, Shoprite, Game, Cashbuild and Makro. The acquisition is immediately earning accretively on day one,” Dipula said.
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The largest acquisition is a 50% interest in Lephalale Mall in Limpopo, valued at R516 million. Other major purchases include Kaalfontein Corner in Midrand for R297-million and Makro Bloemfontein for R284-million.
Dipula is also acquiring City Centre Polokwane for R210 million, Randsteam Shopping Centre in Johannesburg for R154 million, Sasolburg Junxion for R147 million, Great North Plaza in Musina for R134 million and Game Centre Vryburg for R129 million.
Checkers Centre, Polokwane, is being acquired for R168.3 million. The acquisition strengthens Dipula’s focus on convenience, township and rural retail assets while increasing its geographic diversification across Limpopo, Gauteng, North West and Free State.
The company said the transaction supplements acquisitions made over the past 12 months, including Protea Gardens Mall, Gezina Walk, Bayer Klerksdorp and Airborne Business Park. It also recently acquired Birch Acres Square in Tembisa for R145-million.
The company currently has 158 properties, including 80 in retail, 30 in office spacing, 44 industrial properties and four residential spaces, with most of their properties concentrated in Gauteng.
The transaction will be partly supported by a private placement through which Dipula accepted bids for approximately R1.1 billion of new equity. The new shares are expected to begin trading on the JSE on September 1.
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Dipula will also need to secure debt funding for the applicable portion of the transaction, unless it determines that such funding is no longer required.
The final consideration for Kaalfontein Corner and Makro Bloemfontein will be adjusted for debt funding, net working capital and certain other assets and liabilities in the holding company. According to the company, overall purchase price is also subject to agreed escalation rates from July 1, 2026 until the properties are transferred, subject to a long-stop date of March 31, 2027.
- Dipula Properties will spend over R2 billion to acquire nine retail properties across Limpopo, Gauteng, North West, and Free State provinces.
- The largest acquisition is a 50% interest in Lephalale Mall, valued at R516 million, with other major purchases including Kaalfontein Corner, Makro Bloemfontein, and City Centre Polokwane.
- The properties have a combined gross lettable area of 89,168 sqm and are leased to tenants such as Checkers, Shoprite, Game, Cashbuild, and Makro.
- Dipula plans to raise approximately R1.1 billion of new equity through a private placement, with trading of new shares expected to begin on the JSE on September 1.
- The total purchase price is subject to adjustments for debt, net working capital, and other liabilities, with escalation rates applying from July 1, 2026, until property transfer by March 31, 2027.
