Dipula buys Gillwell Taxi Retail Park

By Joan Muller

Dipula Income Fund continues to bulk up its portfolio with retail centres that cater to lower-and middle-income shoppers‚ with the acquisition of the Gillwell Taxi Retail Park in East London’s central business district for R316m.

The development gained planning permission in December last year and is expected to be completed in the first half of 2015. The proposed development‚ which will comprise 21‚521m² of shopping centre space built over three levels‚ was acquired from developers Isibonelo Property Services and Eris Property Group.

Dipula CEO Izak Petersen said Gillwell Taxi Retail Park met Dipula’s strategy of acquiring larger‚ quality retail assets in targeted areas and improved the quality of the company’s portfolio. The development is well located in the retail hub of East London’s CBD and offers a sustainable income growth opportunity underpinned by major national retailers.”

The acquisition will take Dipula’s portfolio to 182 retail‚ office and industrial properties with a total value of about R4.4bn.

Dipula‚ one of only a handful of black managed property stocks‚ did not live up to expectations last year with a disappointing total return performance of -6.5% for the B units and -12.5% for the B units versus the sector’s total return of 8.39% for 2013‚ the latest figures from Catalyst Fund Managers showed. However‚ analysts said Dipula now appeared undervalued. Both the A and B units are trading at an attractive forward yield of more than 9% compared with the sector’s average 7.5%.

Dipula is one of Meago Asset Managers Jay Padayatchi’s top picks for 2014. He said Dipula was one of the smaller stocks in the listed property space that could become a potential takeover target for larger players who were unable

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