JSE-listed real estate investment trust Dipula Properties has made five strategic acquisitions totalling about R700-million, including the R480-million acquisition of Protea Gardens Mall, in Soweto.

With these acquisitions, Dipula continues its portfolio growth strategy that is focused primarily on retail, industrial and logistics assets. The acquisitions are a response to improving market conditions and a more favourable cost of capital environment, says Dipula Properties CEO Izak Petersen.

All the income-earning properties are income- and quality-enhancing for Dipula’s portfolio. The deals are subject to standard conditions precedent and transfers are expected to take place between September and November.

Protea Gardens Mall is a 24 000 m² community shopping centre located in the densely populated area of Protea Soweto. Anchored by national retailers, including Shoprite, Boxer and Cashbuild, alongside top-tier fashion brands, the mall boasts more than 70% national tenant occupancy, which represents its retail strength and income durability.

“Protea Gardens Mall is an excellent strategic fit for Dipula with embedded growth and value unlock potential, underpinned by quality tenants and a growing consumer market,” says Petersen.

The acquisition supports Dipula's strategic objective to grow its exposure to its targeted retail markets. It also reinforces the company’s commitment to community upliftment through accessible, everyday shopping experiences, he adds.

Further, the company also concluded terms for two retail additions that will deepen its presence in key and proven markets.

Woolworths Gezina is adjacent to Dipula’s highly successful Gezina Galleries, in Pretoria, Gauteng. This 4 600 m² addition will be incorporated into the existing centre. The expansion enhances the overall tenant mix and brings the centre’s gross lettable area to around 20 000 m².

Additionally, Dipula has agreed to acquire land adjacent to the 15 000 m² Tower Mall, in Klerksdorp, North West. This acquisition unlocks future expansion potential for the strongly performing shopping centre, Petersen says.

Meanwhile, Dipula concluded terms for two properties, which will further cement its core focus on logistics and industrial assets.

Airborne Industrial Park, located near OR Tambo International Airport and adjacent to the N12 highway, is a fully let multi-tenanted park of 6 964 m², in Ekurhuleni, Gauteng.

Similarly, Abland DC, is a modern logistics development spanning more than 16 000 m², anchored by a strong tenant covenant on a long lease.

“Both these assets have excellent tenant profiles, and are well aligned with our approach to capital allocation in the industrial sector, which is a core part of our strategy,” adds Petersen.