Dipula acquires Gillwell Taxi Retail Park
The development in the East London CBD, gained planning permission in December 2013 and this transaction will become effective after the centre's construction is complete, in the first half of 2015.
Izak Petersen, CEO of Dipula says, "The property meets the company's strategy of acquiring larger, quality retail assets in targeted areas and improves the overall quality of our portfolio.
"The development is a well located retail site in the retail hub of East London's CBD and represents sustainable income growth underpinned by major national retailers."
Leases are being finalised with the centre's anchor retailers Game and Shoprite.
The transaction is subject to various conditions, including 80% of the development's retail space being pre-let and rental guarantees on any unlet space. As part of the transaction, Isibonelo and Eris will develop the centre and will also undertake its management for its first two years from opening.
"Besides meeting our growth strategy, the acquisition also increases our exposure to the growth opportunities from commuter retail in one of the busiest CBDs in South Africa," says Petersen.
The company is finalising the acquisition's financial effects and, until these are announced, it has advised its linked unitholders to exercise caution when dealing in its linked units.
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