September 4 2026 15:30
JOHANNESBURG, SOUTH AFRICA
JSE-listed South African real estate investment trust Dipula Properties has bought nine shopping centres from Moolman Group and its co-investors in a deal worth R2bn.
This deal, which adds almost 90,000 square metres of retail space, involves malls located in the Free State, the North West, Gauteng, and Limpopo.
The acquisition includes four shopping centres in Limpopo:
- Lephalale Mall (50% stake)
- Checkers Centre Polokwane
- City Centre Polokwane
- Great North Plaza (in Musina)
It also includes two shopping centres in the Free State:
- Sasolburg Mall (50% stake), formerly Sasolburg Junction
- Bloemfontein Makro.
The acquisition includes two assets in Gauteng:
- Kaalfontein Corner (Tembisa)
- Rand Steam Shopping Centre (Richmond)
In the North West, there is one asset:
- Game Centre Vryburg
Dipula Properties has invested in a diverse portfolio of assets located throughout South Africa. Its retail properties are situated close to residential areas in townships, and in both rural and urban locations.
The company owns a diverse property portfolio of malls, mid-sized logistics and industrial assets, offices, and a smaller, non-core portfolio of affordable residential properties.
The biggest property in this deal is a 50% stake in Lephalale Mall in Limpopo, which accounts for around a quarter of the total transaction value.
Dipula is using two strategies to fund the major purchase, including utilising investors and bank loans.
The company has sold new shares to private investors, which helped it raise R1.1bn in cash. The new shares are set to start trading on the JSE on 1 September 2026.
The remaining balance will be covered by Dipula’s current debt facilities. Dipula’s overall debt-to-property value ratio will remain between 35% and 40%.
The acquisition is “accretive from day one,” meaning that the rental income from these shopping centres is sufficient to immediately boost Dipula’s earnings per share, rather than taking years to become profitable, the group said.
Over the past year, Dipula has acquired properties worth R3bn.
This latest deal realigns its business model to focus primarily on retail, increasing its retail income to nearly 80% of its total portfolio while reducing its exposure to the weaker office market to around 10%.
The group raised R1.1bn in private funding, demonstrating that institutional investors have considerable confidence in Dipula’s leadership and growth strategy.
The new shopping centres are expected to generate a 9.3% annual rental return based on their purchase price. This return is technically lower than Dipula’s average cost of raising capital, which includes both bank interest and investor expectations.
Since the group is financing the deal with approximately 40% lower-cost bank debt and investor equity, the malls’ cash flow is sufficient to cover their financing payments.
“The strong support for our equity raise also demonstrates investor confidence in our strategy, our disciplined approach to capital allocation and the growth path ahead,” CEO Izak Petertsen 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%,” said Peterson.
alistair@propertyflash.co.za
