JSE-listed real estate investment trust (REIT) Dipula Properties is significantly expanding its retail footprint after agreeing to acquire nine shopping centres from Moolman Group and its co-investors in a transaction valued at about R2 billion.
The deal represents Dipula’s largest acquisition to date and will add almost 90,000 square metres of income-producing retail space across four provinces.
The portfolio is anchored by major national retailers including Checkers, Shoprite, Game, Cashbuild and Makro, strengthening Dipula’s exposure to defensive, everyday retail spending.
The acquisition also pushes Dipula’s total acquisitions over the past 12 months to 14 properties worth approximately R3 billion, underlining a renewed focus on targeted expansion in retail, logistics and industrial property.
Nine shopping centres across four provinces
The portfolio includes a 50% interest in Lephalale Mall in Limpopo, the largest asset in the transaction, alongside Checkers Centre Polokwane, City Centre Polokwane and Great North Plaza in Musina.
The remaining properties include Bloemfontein Makro and a 50% interest in Sasolburg Mall in the Free State, Kaalfontein Corner in Tembisa and Rand Steam Shopping Centre in Richmond in Gauteng, as well as Game Centre Vryburg in North West.
Dipula says the properties fit its strategy of owning well-located convenience, township and rural retail centres that serve established consumer markets.
R1.1bn equity raise supports expansion
To help fund the acquisition, Dipula has also secured R1.1 billion in new equity through a private placement.
The new shares are expected to begin trading on the JSE on 1 September 2026. Dipula plans to combine the equity proceeds with existing debt facilities to finance the transaction.
The company expects its loan-to-value ratio to remain between 35% and 40% once the transaction is implemented, keeping leverage within its targeted range.
The portfolio is being acquired at a blended yield of approximately 9.3%, with Dipula describing the transaction as earnings-accretive from day one.
Retail becomes even more central
The acquisition is set to increase retail’s contribution to Dipula’s income to nearly 80%, making the retail portfolio an even more important component of the REIT’s earnings base.
Dipula has been steadily repositioning itself around defensive retail assets while also growing its logistics and industrial exposure.
CEO Izak Petersen said the transaction was not about pursuing scale for its own sake, but about selectively acquiring quality assets capable of strengthening the portfolio and generating sustainable returns.
A bigger platform for growth
The latest deal follows Dipula’s acquisition of assets including Protea Gardens Mall in Soweto, Gezina Walk, Bayer Klerksdorp and Airborne Business Park. The company also acquired Birch Acres Square in Tembisa for R145.4 million.
The expansion signals a more aggressive phase of growth for Dipula, but one built around its established strategy of investing in retail centres serving township, rural and urban convenience markets.
With the R2 billion transaction and R1.1 billion capital raise, Dipula is positioning itself as a larger player in South Africa’s listed property sector while attempting to maintain balance-sheet discipline.
The key test now will be whether the enlarged retail portfolio can deliver the expected earnings growth while Dipula continues to manage interest-rate, consumer-spending and property-market risks.
